As CFOs finalize budgets for 2026, insurance remains one of the categories with the most opportunity for meaningful improvement. Premiums represent only part of the financial picture. Claims performance, data quality, contract structures, and operational changes all influence future costs and coverage availability.
The market is more stable than it has been in recent years. Still, carriers are selective, and the organizations that take a thoughtful approach to risk financing and planning will start the year with more control and better negotiating power. Below are the areas decision-makers should focus on as they shape their financial and risk strategy for 2026.
Start With the Numbers Behind the Numbers
Most renewals are influenced as much by exposure accuracy and data quality as by claims. Underwriters want to see that an organization understands its operations and keeps information current. When payroll, revenue, property values, fleet details, or locations are outdated, it creates confusion and reduces carrier appetite.
A practical step is to review whether:
• Revenue and payroll reflect current operations
• Property and equipment valuations match replacement costs
• New assets or locations have been added
• Any business model changes affect risk
Accurate data sets the foundation for credible pricing and stronger underwriting interest.
Look at Total Cost of Risk Instead of Focusing on Premium Alone
Premium trends matter, but total cost of risk gives leaders a clearer picture of financial impact. TCOR includes premiums, deductibles, retained losses, administrative time, and indirect costs such as lost productivity during claims.
Evaluating TCOR helps CFOs answer questions like:
• Are we absorbing losses that could have been prevented?
• Should we adjust deductibles to improve predictability?
• Are we investing enough in safety or training to lower long-term costs?
• Do our claims trends suggest a structural change in risk?
This broader view supports smarter budget decisions and long-term planning.
Use Claims Trends as a Strategic Indicator
Claims are not simply historical events. They highlight patterns that influence future underwriting and pricing.
CFOs should look for:
• Repetitive injuries or incidents
• Categories where losses are rising
• Improvements that followed corrective actions
• Open claims that may develop further
• Differences across locations, teams, or departments
A clear claims story reassures underwriters that risks are managed. It also helps leaders target improvements that can lower costs in the future.
Reassess Limits and Retentions for Today’s Environment
Liability costs have changed significantly due to legal trends, higher medical expenses, and larger settlements. Many organizations still carry limits that once felt adequate but no longer reflect the scale of potential losses.
This is a good moment to ask:
• Do our limits match our current operations and revenue?
• Would a different retention help stabilize costs?
• How do our limits compare to companies of similar size?
• Do changes in property values require adjustments?
Even small adjustments can have a measurable impact on financial protection and premium stability.
Review Cyber Controls Through a Business Lens
Cyber incidents remain one of the fastest-growing sources of loss, especially for small and mid-sized businesses. Carriers in 2026 will expect stronger controls, and those expectations directly influence pricing and availability.
Areas worth reviewing include:
• Multifactor authentication
• Backup and restoration processes
• Employee training consistency
• Vendor access and data handling practices
• Privileged account management
Often, the cost of improving these controls is modest compared to the financial risk of a breach.
Align Contract Structures With Your Risk Strategy
Contracts can shift liability in ways that have major financial consequences. Many CFOs discover that outdated indemnity language or incomplete certificates have increased exposure without anyone noticing.
Useful questions to consider:
• Do vendor contracts reflect our current requirements
• Are we collecting the insurance documentation we need
• Are indemnification agreements consistent across partners
• Have any operational changes created new obligations
A contract review at the start of the year reduces surprises during claims and strengthens risk transfer.
Set a Renewal Strategy Early in Q1
A strong insurance program is built through preparation, not reaction. CFOs who set a renewal timeline early can coordinate internal teams, gather information proactively, and enter the market with a stronger position.
An early planning session should cover:
• Exposure updates
• Claims performance
• Budget expectations
• Operational changes
• Opportunities for improvement
• Risk control investments
This sets the tone for a smoother renewal and better results.
Tackling 2026 With Confidence
A thoughtful approach to your insurance and risk budget helps stabilize costs, improve underwriting outcomes, and support stronger financial planning. CFOs who take a structured, data-informed approach early in the year often see more predictable results and a clearer understanding of where to invest in risk control.
If you would like support evaluating your current program or optimizing your risk strategy for 2026, schedule a consultation or request a financial-focused review today: https://libertycompany.com/contact/
