The Insurance Information Institute announced early signs of stabilization in the U.S. homeowners insurance market as post-COVID inflation pressures settle into a new normal for risk pricing.
In its press release, the Insurance Information Institute indicated that the homeowners insurance market is beginning to show early signs of stabilization despite rising premiums and tightening coverage options straining household budgets. The organization reported that the second quarter of 2025 delivered a notable improvement with the direct incurred loss ratio at 58.9 percent, marking the strongest second-quarter result in more than 15 years. Triple-I said that the U.S. homeowners segment is projected to post double-digit net written premium growth in 2025, with a return to overall profitability expected in 2026.
According to the U.S. Chamber Institute for Legal Reform, the U.S. tort system incurred costs and compensation exceeding $529 billion in 2022. This amount equates to over $4,200 per household and represents 2.1 percent of the nation’s gross domestic product. Commercial tort liability constitutes 57 percent of these total costs.
The Insurance Information Institute (Triple-I) serves as a trusted source of unique, data-driven insights on insurance. The organization aims to educate, elevate, and connect consumers, industry professionals, public policymakers, and media by providing information on insurance topics including homeowners coverage trends.
