{"id":7330,"date":"2026-05-18T18:29:00","date_gmt":"2026-05-18T16:29:00","guid":{"rendered":"http:\/\/stocks-future.com\/?guid=1b111ace4d846cab0e209aa7b9edde61"},"modified":"2026-05-18T18:29:00","modified_gmt":"2026-05-18T16:29:00","slug":"bests-special-report-personal-auto-and-homeowners-markets-stabilization-evident-despite-a-decline-in-approved-rate-changes","status":"publish","type":"post","link":"https:\/\/stocks-future.com\/?p=7330","title":{"rendered":"Best\u2019s Special Report: Personal Auto and Homeowners Markets\u2019 Stabilization Evident Despite a Decline in Approved Rate Changes"},"content":{"rendered":"

OLDWICK, N.J.--(BUSINESS WIRE)--#insurance<\/a>--Average annual rate increases for U.S. private passenger auto and homeowners\u2019 policies shifted back to pre-pandemic levels in 2025, following years of large increases amid elevated losses in each line of business, according to a new AM Best<\/b> report.<\/p><\/a><\/a>

\nThe average approved rate increase for homeowners\u2019 policies dropped off 5.2 percentage points to 8.3% in 2025, compared with a year earlier. For private passenger auto (PPA), the average approved rate increase was 3.7% in 2025, significantly less than the 9.7% level registered in 2024.<\/p>

\n\u201cThe improvement experienced by U.S. homeowners\u2019 insurers has been driven by both aggressive rate increases and enhanced pricing sophistication in states that had been generating the most adverse results,\u201d said David Blades, associate director, AM Best. \u201cPPA and homeowners underwriting results have made progress, partly because of a concerted push for premium adequacy.\u201d<\/p>

\nThe report\u2019s underlying analysis is based on a review of Best\u2019s State Rate Filings data, which shows that increased loss frequency and severity across the United States led to spikes in filed rate increases in the personal lines industry in 2023 and 2024. In 2025, there was a significant shift in the magnitude of rate increases following a trend of improving loss ratios for insurers in the prior year, which may signal stabilization after a period of higher rate changes. The improved industry performance was evident from a 9.2 percentage point decrease in the total U.S. homeowners\u2019 industry loss ratio from 74.8 in 2023 to 65.6 in 2025.<\/p>

\nPPA lines of coverage experienced similar results but not all states have had the same recent experience. In 2024, PPA insurers generated an underwriting profit for the first time since 2020, when results were skewed because of COVID. However, auto insurance rates in California, Nevada, New Jersey, and New York remained disproportionately high in 2025, despite the sharp decline in the national average. Over the past three years, insurers in most of the states with the smallest average rate changes from 2024 to 2025 have experienced aggregate loss ratios higher than U.S. average loss ratio.<\/p>

\n\u201cBecause insurers in these states experienced more favorable underwriting results in 2025, rate filings in the near future will likely reflect those positive results,\u201d said Dylan Catania, associate analyst, AM Best.<\/p>

\nAmong some of the reports other key findings:<\/p>