Property insurance prices, after soaring due largely to extreme weather, are starting to stabilize, a new analysis says.
Price hikes in 2025 were significantly smaller among U.S. insurers than they were in 2024 and may soon level off, ratings agency AM Best said.
Insurers over the past decade have reduced losses and “aggressively” hiked rates in response to wildfires and severe storms — changes that have “decreased the pressure” to increase rates, the agency said in an analysis released Monday.
The analysis offers the latest snapshot of how U.S. insurers are adjusting to climate change and intensifying disasters that have caused extensive property damage. It coincides with recent announcements by major insurers that they are increasingly able to set premiums that match damage risk — a concept they term “rate adequacy.”
