UK product liability report released by Insurance Times
The UK product liability insurance sector faces significant upheaval, as detailed in a recent analysis by Insurance Times and Arch Insurance. The report, Rising Complexity: Rethinking UK Product Liability Risk Report 2026, explores how brokers adjust to new underwriting conditions, client risks, and external pressures in an evolving environment.
Brokers report stability—but only on the surface
Responses from 210 UK product liability brokers reveal a market that appears stable at first glance. Early signs suggest price softening, yet the reality is more complex. Underwriting decisions now take longer, with insurers requiring extensive details about supply chains, data quality, and geopolitical factors before finalizing policies.
Stuart Danskin, director of underwriting at Arch Insurance UK’s Regional Division, explained that the market’s calm is misleading. “Premiums may be easing for some risks, but placing business has become far more demanding,” he said. “Insurers no longer make quick decisions based on limited information. They want transparency early in the process.”
Mark McGrady, head of casualty at Arch, noted that risks themselves are shifting. “Demand for coverage on traditional products is declining, while interest in complex, high-tech, or emerging sectors is rising. This requires a different underwriting approach.”
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New risks, new pressures
The analysis shows a clear shift away from conventional product liability risks toward specialized sectors. Renewable energy, defense supply chains, research and development, and advanced technology components see the fastest growth. These areas introduce challenges like evolving manufacturing methods, globalized supply chains, and untested regulations—issues traditional underwriting models weren’t built to address.
For brokers, this means more time spent gathering data and answering underwriter questions. Policies now often include conditional terms.
Geopolitical instability and supply chain fragility remain persistent concerns. A single disruption—whether from trade disputes, shipping crises, or regulatory changes—can alter a client’s risk profile overnight. Insurers, wary of unexpected exposures, tighten requirements and sometimes reduce coverage for certain industries.
While these trends affect markets globally, the UK’s emphasis on consumer protection raises the stakes. A high-profile claim can influence underwriting standards and pricing for years. The same forces—technological change, supply chain dependencies, and regulatory uncertainty—are reshaping industries worldwide, but the UK’s legal framework amplifies the impact.
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Future outlook for brokers and insurers
The report warns that current stability may not last. While premiums ease for some risks, underlying pressures—geopolitical tensions, supply chain weaknesses, and rapid technological change—persist. Brokers expect underwriting to remain cautious, with a continued focus on data transparency and risk reduction.
Clients must prepare for greater scrutiny. Companies in emerging sectors should invest in better record-keeping, supply chain mapping, and risk assessment to secure coverage. Those demonstrating strong controls and operational visibility will likely receive better terms. Others may face higher costs, stricter exclusions, or rejection.
The analysis presents no simple answers. It describes the current period as one of adjustment, where insurers, brokers, and clients must adapt to new rules. The previous approach no longer works.
Danskin concluded, “The market isn’t broken, but it has changed dramatically in just two years. Success depends on how quickly everyone can adjust.”
