US Property Insurance Rates Fall for the First Time Since 2017 as Insurers Return to Profitability

For the first time since 2017, US property insurance rates have decreased, with a 0.94% decline in the second quarter of 2023 compared to the previous year, according to Aon Plc. The reduction comes after several years of rising premiums, driven by increased losses from frequent catastrophes, which severely impacted insurers’ profitability. However, the tide has turned as lower losses last year helped insurers regain financial stability, leading to more capital allocation and competitive pricing strategies.

Vincent Flood, Aon’s US property practice leader, noted that clients had grown weary of constant rate increases. He explained that the trend of rate moderation could persist, provided catastrophic events remain at bay. If conditions hold steady, rates are expected to decline further in 2025. However, any significant event could quickly stabilize or reverse this trend.