Insurance Marketplace Realities 2026 – Personal Lines

Rate predictions: Personal Lines

	Trend	Range
United States
Homes		+15% to +20%
Cat-exposed homes		+50% or greater with some limitation and target non-renewals
Cat-exposed homes with losses		+100% or greater with possible non-renewal
Auto		+10 to +15% (we're seeing improvement)
Personal Umbrella Liability		+14% to +18%; reduced capacity, increased litigation exposure has driven rates +30%, especially for high-net-worth, successful individuals that are looking for high limits or with adverse claim history
Canada
Homes		+8 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%

U.S. market update

• Excess Liability: Rates are continuing to rise, driven by increasing liability claims and settlements. Insurance carriers are also tightening capacity for umbrella coverage, often requiring clients to demonstrate net worth for coverage limits exceeding $5 million.
• Risk prevention and mitigation: Insurers remain focused on proactive loss prevention. Common requirements include the installation of TING sensors, low-temperature alarms, water shut-off devices, roof replacements for aging homes, the creation of defensible space in wildfire zones and higher all-peril deductibles.
• Auto insurance: The auto-market is stable, with modest rate increases. Leading insurers are reporting a profitable 2024.
• Cyber coverage: As cybercrime becomes more prevalent, it's increasingly important for families to consider adding cyber protection to their personal insurance policies.
• Personal lines: The market remains challenging, with notable rate increases and strict underwriting. However, overall rate hikes are less aggressive than in previous periods. Carriers are showing an increased appetite for well-profiled risks — even in catastrophe-prone areas — particularly for high-value homes, where competition is strong.
• E&S solutions: Surplus lines continue to provide viable options for homes in catastrophe zones or those with prior loss history. More capacity and new market entrants are expanding availability, offering greater choice for clients.

Canada market update

• Excess Liability: Rates remain stable and affordable, typically under $1,000 for $10 million excess coverage across two properties, two vehicles and a watercraft. However, carriers are applying greater underwriting scrutiny for higher limits. A significant number of consumers are still unclear about the specifics of this coverage and the extent of their current protection.
• Underwriting and risk management: Underwriting scrutiny continues to tighten across the board. Mirroring trends in the U.S., there's a rising emphasis on proactive risk management. Water shut-off systems are increasingly becoming a standard requirement — much like centrally monitored alarm systems have been in the past.
• Auto insurance: Rates have reached unprecedented levels, particularly in major urban centers. Auto-insurance reform is currently under discussion, as existing rate caps — originally intended to protect consumers — are now placing significant financial pressure on insurers and proving increasingly unsustainable.

Proactive coverage management: tips for staying protected

To ensure your insurance continues to meet your needs as your life and assets evolve, consider the following best practices:

• Review your coverage annually to ensure it aligns with your current lifestyle, assets and any major changes.
• Evaluate your liability limits to confirm they adequately reflect your net worth and potential exposure.
• Bundle your policies (home, auto, watercraft) to maximize available discounts and simplify policy management.
• Implement risk mitigation measures such as water shut-off devices, centrally monitored alarms and roof upgrades to reduce potential losses and improve insurability.
• Understand your policy's exclusions and limitations to avoid unexpected gaps in coverage at the time of a claim.
• Explore endorsements and alternative solutions for added protection, especially if you’re in a high-risk area or have unique exposures.
• Have regular conversations with your advisor to walk through potential risk scenarios — and how your coverage can respond.

Contact

---

Despina Buganski

Head of North America Personal Lines

email Email phone +1 860 930 0557

---