General Market Overview

While 2024 saw rising costs in property, auto, and excess liability lines, the reinsurance market is gradually normalizing, and encouraging signs of market stabilization are emerging. Carriers have strategically adjusted rates, coverage and risk selection, especially in catastrophe prone regions, and these adjustments enable more creative and flexible solutions through admitted and non-admitted markets.

After several years of premium increases, homeowner and cyber insurance markets are stabilizing. As nuclear verdicts and high-severity claims become more frequent, the limits of primary insurance policies are no longer sufficient making umbrella coverage essential for safeguarding against catastrophic financial exposure. The surge in multi-million dollar verdicts is reshaping the risk landscape, forcing underwriters to tighten standards and reevaluate liability thresholds to stay ahead of escalating claim costs.

The personal insurance landscape presents challenges and opportunities. Staying informed and proactive by tailoring insurance programs to meet your needs can help build stronger protections and greater peace of mind.

Key Factors Driving the Market

• Natural disasters, such as wildfires, floods and hurricanes, are increasing in frequency and severity, affecting property insurance and requiring careful risk assessment.
• Legal pressures, litigation trends and regulatory shifts continue to increase exposure for personal umbrella and excess liability policies.
• Emerging risks like cyber threats and identity theft require expanded coverage options for personal cyber liability.
• Regional risks vary widely, with some catastrophe-prone areas facing higher premiums and tighter underwriting.

Region-Specific Insights

Homeowner

Market Overview

Natural disasters continue to dramatically shape the risk landscape. In 2024, the U.S. experienced unprecedented billion-dollar weather events, underscoring the increased frequency and severity of catastrophes. This volatility directly impacts construction costs and timelines for rebuilding, affecting insurance pricing and availability for homeowners and other property owners.

Carriers prioritize well mitigated risks and customers who are actively engaged in risk management, which puts pressure on the homeowner market. Mitigation technologies such as water leak detection, backup generators and wildfire-resistant landscaping are increasingly becoming prerequisites for coverage.

Impacts

The market remains challenging in catastrophe-prone areas, primarily driven by rising loss severity. Carriers have tightened their underwriting
standards and are increasing rates by 10-40% based on location and mitigation practices. Mitigation practices include fire-resistant materials, water leak detection, security measures and other practices that help minimize exposure. As the E&S market grows, some critical capacity is offered in more restricted areas. Tariff activity may impact the cost of materials imported internationally.

Working with your advisor to conduct regular, in-depth coverage reviews, securing appropriate umbrella limits, adding flood and cyber insurance and consulting before filing claims are essential best practices. Maintaining timely premium payments and investing in risk mitigation helps to ensure uninterrupted protection and peace of mind.

Region-Specific Insights

• An above-average hurricane season is forecasted with increased storm frequency and intensity driven by warming ocean temperatures
• Convective storm activity will remain elevated, with continued hail risk concentrated in the central region of the country
• Wildfire season is projected to expand geographically and in intensity due to persistent drought conditions in the west and southeast
• Flood risk will intensify due to urban expansion and climate-driven precipitation increases

Learn more

Brown & Brown’s Personal Insurance team has published several preparedness and claims guides for homeowners covering several different natural disasters. Click the links below to learn more.

• Wildfires
• Hurricanes
• Flood
• Severe Convective Storms

Auto

Market Overview

Auto insurance profitability has rebounded due to rate adjustments that addressed the increase in claim severity and supply chain impacts. Throughout the space, advanced telematics adoption has grown, improving risk segmentation. Artificially intelligent underwriting model utilization has accelerated, helping provide more efficient pricing and risk selection.

Impacts

Continued inflation is driving repair and medical costs, and tariffs pose the potential to increase costs further. To offset the rising losses, rate increases are expected to endure. High-value vehicles will likely require specialized underwriting and appraisal services. Carriers remain focused on risk controls, such as climate-controlled storage and detailed valuation updates.

Learn more

Preserving Automobile Collections: For car enthusiasts, automobile collection is more than a hobby. It’s a culture and lifestyle. Auto collections vary widely, encompassing classics and modern marvels. In recent years, there’s been a shift in car collecting trends.

Electric Vehicle Infrastructure | Navigating Fire Safety Challenges: As the adoption of electric vehicles continues to rise, the expansion of charging infrastructure becomes a critical component of supporting this transition. However, with this development comes fire safety challenges requiring careful consideration.

Excess

Market Overview

As litigation trends intensify, excess liability insurance becomes more crucial than ever. Increased litigation exposure drives rate pressures and stricter underwriting, with carriers focusing on risk management, security enhancements and umbrella policy layering.

Impacts

Limits exceeding $10M are becoming more challenging to secure, and often require layered policies from multiple carriers to help ensure adequate protection. As auto accidents drive the majority of excess liability claims, carriers are more selective when assessing driving history and auto loss experience, requiring both lines of coverage to help manage the overall exposure. When selecting the limits of excess liability, customers should consider their total assets and overall liability risk.

Learn more

Group Excess Liability | Personal Insurance Overview: Group excess liability insurance offers an alternative solution to preserve and protect what matters to you most. These policies are available to companies with more than 25 employees and groups of professionals or executives.

Excess Liability Coverage in Action: An excess liability policy adds a layer of protection as an umbrella policy, covering both home and auto. Ultimately, it provides liability insurance when the primary limit of liability has been reached in the event of a lawsuit.

Specialty Coverages

Marine

Market Overview

The yacht and large vessel insurance market has seen considerable stratification across U.S. regions, with demographic and geographic pressures reshaping market options and capacity. Across all regions, capacity constraints are directly tied to global reinsurance tightening, particularly after a series of CAT events and yacht fires. A growing number of carriers now require central alarm, crew background checks, and marina risk assessments. This market is shifting toward specialty insurers and managing general agents (MGAs) who can craft bespoke policies, especially for high-value yachts navigating internationally.

Region-Specific Insights

• Florida: A high concentration of affluent owners, frequent storm exposure and year-round boating activity has led to tightening underwriting standards. Due to increased reinsurance costs and CAT loss frequency, many carriers have reduced capacity, favoring high net-worth individuals with pristine loss histories.
• Pacific Northwest: Boaters benefit from relatively calmer waters and a seasonal boating culture, keeping rates lower and underwriting more flexible, though capacity remains limited for yachts transiting to Southeast Alaska.
• Midwest: Coverage is primarily seasonal, driven by usage on the Great Lakes. Risk profiles skew toward family-owned vessels under 60 feet, and market options are broader, with several national carriers offering competitive packages. However, extended navigation can limit underwriter appetite.
• Northeast: Markets face moderate storm exposure and aging marinas but benefit from higher vessel valuations and strong customer profiles
• Bahamas and U.S. Virgin Islands: Navigational waters have come under increasing scrutiny following repeated storm losses, pushing several domestic carriers to restrict or exclude coverage unless paired with higher deductibles and storm haul-out requirements.
• Mediterranean: While less volatile, this region faces geopolitical risks that concern reinsurers, prompting rising premiums for international navigational endorsements.

Learn More

Protecting Watercraft: A Guide to Comprehensive Coverage: Owning a boat comes with unique risks, ranging from unpredictable weather to liability concerns that could lead to costly repairs or financial loss. These potential scenarios make having a comprehensive watercraft insurance policy an invaluable safeguard.

Aviation

Market Overview

Pilot shortages and rising repair costs have resulted in higher premiums and stricter underwriting. Carriers are encouraging upgraded avionics and pilot training programs to help reduce loss severity. Continued emphasis remains on risk control strategies like climate-controlled storage and detailed valuation updates.

Equine

Market Overview

Severe weather events, rising veterinary costs and enhanced valuation of assets are impacting pricing in the equine space. Carriers require enhanced risk controls, such as fire prevention and transportation safety protocols.

Collections

Brown & Brown’s Personal Insurance team has published several articles covering different collections. Learn more about each one by clicking below. Teams are monitoring the impacts caused by tariffs, which could increase replacement costs for items imported internationally.

How Generational Shifts in Jewelry Purchasing Are Shaping the Market: Several jewelry purchasing trends have evolved in recent years as tastes, preferences, market trends and the economy have shifted.

Uncorking the Basics of Wine Insurance: Collecting wine is a hobby that dates back hundreds of years, and in recent decades, has emerged as an alternative to traditional investing. Why should someone consider insuring their collection?

Secure Your Legacy | Specialized Insurance for Valuable Articles: Most homeowners believe their jewelry is covered under their homeowner’s policy. Although some coverage does extend from a standard policy, it is often limited. While most individuals use best practices to keep these treasures safe, unforeseen mishaps are always possible.

Watches – A Timeless Investment: In the era of smartphones and wearable tech, the wristwatch may seem like a relic. However, despite the uptick in digital timekeeping devices, traditional analog watches remain a wise investment choice, not just at present time but across generations.

Personal Insurance Team