What’s next? 4 property and casualty trends for 2026

Businesses are moving from idea to prototype faster than ever. Record levels of patent activity, investment and new company formation across advanced materials and manufacturing mean these sectors now host more R&D-driven firms than ever before. However, as creativity and uncertainty ramps up, firms can face a set of exposures as varied as the innovations themselves.

In this landscape, demand is rising for P&C insurance that can protect the assets underpinning early R&D – including patterns (templates that shape or guide production), models (physical prototypes or masters) and moulds (forms used to create repeated parts). A recent example is a company developing biomaterial alternatives for leather. We protected the company’s R&D property – items that are expensive and critical to R&D operations – and provided cover for business interruption and the unique risks posed by cyber events. 

As R&D ventures move from concept to early commercialization, small-scale production begins, the first employees are hired and businesses take on new responsibilities. These early operational milestones create a need for flexible P&C insurance that can adjust as fast as the business evolves, whether that’s adding contents cover or listing new insured parties as teams expand.

As production scales and new markets open up, the complexity only increases. Businesses may seek funding, invest in new technology or explore opportunities overseas – all of which introduce additional risks. That’s why businesses need a scalable P&C offering designed to keep pace with their growth. At CFC, we offer enhanced property and business interruption cover, protection for goods in transit or at third-party locations, and a suite of optional extensions – giving R&D businesses long-term peace of mind

As R&D-led businesses scale into full manufacturing, they often hold larger facilities, multi-market distribution and an increased reliance on third-party partners. Enhanced property and business interruption cover is a must, as well as protection for goods moving through increasingly complex supply chains.

Investments in new technology, entry into additional markets or preparations for sale all add new layers of risk. To navigate their expansion with confidence, manufacturers should look for specialist options – including product recall, manufacturers’ errors and omissions, cyber liability, management liability and legal expenses.

As technical and engineering innovators scale, their operations increasingly span multiple markets and involve complex production models. Be it new product lines, expanding overseas or blending contract manufacturing with self-production, exposures can extend far beyond a single site. Look for policies with products liability, public liability and business interruption cover designed for cross-border supply chains and international distribution.

Environmental and carbon services innovation is also accelerating, from advanced pollution control methods to new material development and emerging carbon-related technologies. These businesses carry dynamic risks comparable to high-growth manufacturers, requiring liability and property solutions that flex with scientific and technical advancement.