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Survey Report

Insurance Marketplace Realities 2023 Spring Update – Personal lines

April 28, 2023

The personal lines insurance market is experiencing a persistently hard market that may extend for several more years.
Personal Lines Insurance
Rate predictions: Personal lines
Trend Range
Homes under $1,000,000 Increase +8% to +12%
Homes over $1,000,000 Increase +10% to +14%
Cat-exposed Increase +20% to +50% w/ limitation or non-renewal
Cat-exposed and/or losses Increase +50% or non-renewal
Auto Increase +10% to +12%

2022 generated the worst loss ratios in more than 25 years for personal lines.

  • Carriers will expand mandates on preventative devices, including automated water shut-off valves, heat and burglar monitoring devices and wind shutters.
  • Many carriers are offering discounts and programs to help clients prevent losses and could provide savings on clients’ homeowner policies.
  • Clients should expect a flight toward higher deductibles and reserve insurance for large-loss situations.

The capacity-starved industry will look to surplus lines markets to fill the gap of difficult placements across the country.

  • Many more carriers have pulled out of the admitted market in high-risk areas altogether, while focusing their capacity in the more flexible excess and surplus lines market.
  • Demand for capacity will continue to outpace supply causing a significant compression on rates and coverages.
  • In extreme situations clients may need to rely on state-sponsored insurance programs to provide coverage for their homes.

We anticipate a significant increase in auto premiums across the entire country.

  • Hurricane Ian losses have been estimated at between $41 billion and $70 billion. Among those losses were up to 358,000 vehicles damaged by floodwaters, according to Carfax.
  • Almost all auto carriers are anticipating rate action across the country to the highest levels in over a decade.
  • Inflationary pressures should soften as carriers manage their rate expectations and as loss trends normalize.


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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