Going into 2025, the personal lines insurance sector outlook has shifted from negative to stable, largely due to improvements in personal auto insurance. Factors contributing to this change include more precise pricing, a supportive regulatory environment and accelerated technology adoption. However, the outlook for homeowners’ insurance remains negative, primarily because of ongoing challenges such as increased weather-related volatility and higher net losses for primary carriers.

While personal auto insurance has shown positive trends, homeowners’ insurance continues to face significant challenges. These include increased severe weather activity and higher retention levels and co-participation agreements between carriers and reinsurers on property lines, which have led to greater net losses for carriers. Additionally, the limited availability of aggregate reinsurance to cover multiple events has further exacerbated the difficulties for homeowners’ insurance carriers.

Personal Insurance Team