Home insurers grow as premiums top $6.3t

Insured losses from natural disasters are expected to reach $140b to $150b in 2025.

The global home insurance market expanded steadily in 2025 as rising climate-related losses and inflation pushed premiums higher worldwide. Industry data show the sector grew by about 7% to 8.6%, with total premiums exceeding $6.3t to $7t, according to the Coin Law.

Insured losses from natural disasters are expected to reach $140b to $150b in 2025, continuing an upward trend driven by worsening climate volatility. 

Floods, wildfires, and severe storms accounted for nearly 69% of global catastrophe losses, underscoring the growing exposure of property insurers to extreme weather events.

Average deductibles rose by 24.5% from 2024 to 2025, particularly in high-risk regions such as the US, where rebuilding costs surged. 

The global rise in home construction material prices—up about 7% to 10% year-on-year—has further increased both insurer and policyholder expenses.

Despite mounting risks, the penetration of home insurance amongst mortgage holders reached a record 96%, reflecting its continued importance for financial protection. 

Analysts said the focus amongst global insurers is shifting toward balancing affordability with the need for sustainable, risk-based pricing.

As climate-related losses escalate, insurers worldwide are tightening underwriting standards, expanding catastrophe models, and revising coverage in high-risk zones. 

These adjustments, coupled with higher reinsurance costs, are expected to keep premiums elevated into 2026.