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Homeowners rate hikes slow to 4.3% in first half of 2026
AM Best also said the direct incurred loss ratio fell to 48.4 in the first half of 2026, its lowest level in five years.
Homeowners insurance rate increases in the US slowed to an average of 4.3% in the first half of 2026, according to an AM Best market segment report cited by Insurance Business.
The report said the slowdown follows a US$16.5 billion underwriting gain in 2025, the first annual profit in six years, after approved increases averaged 13.5% in 2024 and 7.6% in 2025.
AM Best attributed the turn to calmer first-half results and a stabilizing reinsurance market, alongside more sophisticated pricing, improved catastrophe risk management, and more consistent use of disciplined underwriting guidelines.
It also reported that the direct incurred loss ratio reached 48.4 in the first half of 2026, its lowest point in five years, and noted that approved rate adequacy efforts supported double-digit growth in both direct and net premiums written in each year from 2022 through 2024.