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Survey Report

Insurance Marketplace Realities 2023 – Personal lines

December 1, 2022

Carriers remain focused on profitability over growth and have therefore firmed up their underwriting appetite and risk exposure.
Personal Lines Insurance
Rate predictions: Personal lines
Trend Range
Homes under $1,000,000 Increase (purple triangle pointing up) +7% to +10%
Homes over $1,000,000 Increase (purple triangle pointing up) +10% to +14%
Cat-exposed Increase (purple triangle pointing up) +20% to +50% w/ limitation or non-renewal
Cat-exposed and/or losses Increase (purple triangle pointing up) +50% or non-renewal
Auto Increase (purple triangle pointing up) +10% to +12%

In a hyper-inflation environment, an underinsured program is a major concern at time of loss.

  • Carriers and clients struggle to match policies with actual replacement costs as labor and materials have surged this past year.
  • Economic inflation coupled with social inflation has pushed loss costs at its highest point in more than 30 years.
  • Clients and brokers should remain vigilant to keep values up to date with annual replacement cost reviews.

The reliance on surplus lines will continue to grow as the demand for solutions in high-risk areas expand.

  • Premiums written for surplus lines jump to record $82 billion in 2021 (Business Insurance).
  • Admitted carriers will continue to shy away from CAT-prone areas, leaving many clients dependent on alternative markets through surplus lines wholesalers.
  • Non-admitted carriers are demanding significant rate while eliminating coverages usually included by the admitted market.
  • Personal auto premiums will struggle to keep pace in the face of higher costs.

Q2 results for personal auto showed a "significant deterioration,” driven by inflation and corresponding rate adequacy challenges. (AM Best)

  • Frequency and severity of auto claims are increasing to pre-pandemic levels.
  • Elevated used car prices and extended repair times have exacerbated auto carriers’ ability to remain profitable in 2022.
  • Almost all auto carriers are anticipating rate action across the country to the highest levels in over a decade.


Willis Towers Watson hopes you found the general information provided in this publication 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, Willis Towers Watson offers insurance products through licensed entities, including Willis Towers Watson Northeast, Inc. (in the United States) and Willis Canada Inc. (in Canada).


Tyler E. Banks
National Practice Leader
Personal Lines/Private Client

Related content tags, list of links Survey Report Personal Lines Insurance Insurance United States
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