A Q&A with Teresa Cates on what’s changing—and what it means for agents
The construction market doesn’t sit still for long—and neither does the insurance landscape that supports it. From shifting pricing to new building trends, there’s a lot to keep an eye on.
During a recent insurance industry panel, Teresa Cates, Industry Segment Leader, shared her take on where the construction insurance market is heading, what challenges are sticking around, and where agents can find opportunity.
Market conditions and outlook
Q: How is the construction insurance market shaping up as we move through 2026? Are any areas getting easier—or tougher?
Teresa: We’re starting to see signs that the hard market is easing a bit—especially on the property side. A lighter storm season helped reduce losses, and with more competition and capacity entering the market, pricing pressure is softening.
That said, it’s not across the board. Some areas are still challenging and require a more disciplined approach.
Q: What’s your outlook for the next 12–24 months when it comes to pricing, capacity, and risk appetite?
Teresa: Auto continues to be one of the biggest challenges in construction. We’re seeing heavier vehicle usage, more personal use, and more young drivers coming in through apprentice programs.
Telematics is helping—it gives companies better visibility into driving behavior and helps them course-correct.
We’re also seeing more alcohol-related losses, which are driving more severe claims. Because of that, we’re tightening in a few areas:
- Holding heavy fleet umbrella limits at $5M
- Requiring telematics for fleets over 25 vehicles
- Paying closer attention to labor shortages and training programs
Q: How is reinsurance impacting pricing or underwriting limits right now?
Teresa: Reinsurance renewals are coming down, which is helping expand capacity a bit. Property is starting to soften, but climate volatility is still a concern, so we’re not letting our guard down.
On the casualty side, it’s actually a very competitive market right now. Some carriers are stepping into risks they previously avoided.
Opportunities and future direction
Q: Where are you seeing growth opportunities in construction?
Teresa: There’s a lot happening here. We’re seeing growth in:
- Mass timber and modular construction
- Tiny homes and DADUs
- Build-to-rent developments
Modular construction is especially interesting. Building in a factory and transporting to the job site helps address labor shortages and shortens build time.
Q: What role will data and automation play in underwriting moving forward?
Teresa: We’re already using AI and data in a lot of ways to make faster, more informed decisions. Tools like Driver 360 help predict driver behavior and flag potential risks early.
But it’s not perfect. For example, some violation predictors can show a favorable score, and then the motor vehicle record tells a different story.
That’s why the human element still matters. Data gives us direction—but underwriting judgment brings it all together.
Q: In your opinion, what will set the most successful agents apart in the construction space?
Teresa: The agents who stand out are the ones who act as true advisors—not just quoting on price.
That means staying in touch throughout the year, not just at renewal, and bringing value with insights and information. I’ve seen agents use technology and even AI to stay connected and share helpful updates with customers.
It’s also important to have a strong mix of carrier partners. I’d love it if EMC were the only carrier, but the reality is we can’t be all things to all agents. So, having options helps you solve more problems for your customers.
Agent–underwriter collaboration
Q: What’s your preferred way for agents to communicate?
Teresa: I try to meet agents where they are. Some prefer calls, some email, some text—it really depends.
The one thing I’d say is: Keep it concise. Especially on broader outreach like RFPs, a quick yes or no goes a long way.
Q: What makes a submission stand out?
Teresa: It comes down to understanding the risk.
For construction accounts, a strong submission includes:
- ACORD application
- Completed questionnaire
- Work-in-progress details
- Current, valued loss runs
When that’s all there upfront, it makes it much easier to move quickly and quote with confidence.
Q: Any advice for agents looking to build stronger carrier relationships?
Teresa: Communication and transparency are everything.
It’s also about balance. If you’re asking a carrier to take on a tougher account, there should be an opportunity to write some of your best business, too.
We’ve made a lot of progress over the last few years, but sometimes we still see agents positioning us only for more hazardous risks. The strongest partnerships don’t work that way—they’re built on trust and a well-rounded book.
In summary
The construction insurance market is starting to ease, but not evenly across the board. Auto and umbrella continue to be key pressure points, while emerging construction trends like modular and build-to-rent are opening new doors for growth. Data and technology are playing a bigger role than ever, but underwriting still relies on human judgment to connect the dots. And at the end of the day, the strongest agent-carrier partnerships come down to clear communication, consistency, and bringing a balanced book of business to the table.