| Trend | Range | |
|---|---|---|
| United States | ||
| Homes |  |
+15% to +20% |
| Cat-exposed homes | |
+50% to +100% with limitation or non-renewal |
| Cat-exposed homes with losses | |
+100% or non-renewal |
| Auto | |
+15% to +25% |
| Personal umbrella liability | |
+20% to 25% |
| Canada | ||
| Homes | |
+7% to +25% (best in class) |
| Cat-exposed homes | |
+30% with coverage restrictions or non-renewal |
| Hard to place risks | Non-renewal and limited markets | |
| Auto | |
+5% to +13% |
| Personal liability | |
+2% to +5% |
The personal lines insurance market in North America faces ongoing challenges, including rising rates driven by increased claims costs, higher property values and frequent natural disasters. Insurers are also adjusting their risk management strategies and underwriting practices, particularly in high-risk areas, to manage their exposure. Additionally, evolving consumer preferences for customized and affordable coverage options are influencing the market. While some states like Florida have made regulatory adjustments and allowed necessary rate increases to help with capacity, other states are still struggling to catch up, constrained by regulated pricing suppression, impeding insurance availability.
Staying informed and seeking personalized advice is crucial for individuals navigating these changes. We’re closely monitoring recent tariff announcements and the impact on the cost of materials and repairs, which may drive insurer claims expenses upwards and negatively affect premiums for the end consumer. In monitoring these developments, we want to ensure our clients remain well-informed and prepared.
To read more, download the full report below.
| Title | File Type | File Size |
|---|---|---|
| Insurance Marketplace Realities 2025 Spring Update | 12.7 MB |
WTW hopes you found the general information provided here informative and helpful. The information contained herein is not intended to constitute legal or other professional advice and should not be relied upon in lieu of consultation with your own legal advisors. In the event you would like more information regarding your insurance coverage, please do not hesitate to reach out to us. In North America, WTW offers insurance products through licensed entities, including Willis Towers Watson Northeast, Inc. (in the United States) and Willis Canada Inc. (in Canada).
The personal lines insurance market faces rising rates due to claims, property values and disasters. Selective underwriting and advice are key to managing risks and evolving consumer needs.
We continue to predict a pervasive hard market in personal lines across all lines of business with rate increases persisting in 2024.
