Inflation, evolving risks, and rising insurer expectations continue to reshape the Private Clients Insurance market, with clients under greater pressure than ever to demonstrate strong risk management.
In this October 2025 update, our Private Clients experts share their latest assessment of the market for Household, Specialist Motor, Family Office, and Special Crime Insurance.
Household Insurance
The Household Insurance market has experienced inflation-driven rate increases and high indexation in recent years. And while there are signs of both now beginning to reduce, carriers continue to look for profitability and increases.
One area under spotlight are climate risks. According to the Environment Agency, 6.3 million properties in England (opens a new window) are currently at risk of flooding, with climate change projected to raise this to approximately 8 million by 2050. Heavier rainfall, rising sea levels, and the continued development of homes on floodplains with a prevalence of hard surfaces preventing drainage are all contributing factors. Carriers also face upward pressure on premiums due to growing costs from ceding to Flood Re (opens a new window).
Subsidence losses are also rising. Having declared 2022 as a subsidence surge event, with 23,000 reported claims costing £220m in payouts, 2025 is shaping up to potentially be another event year. There were 9,000 subsidence-related claims (opens a new window) reported in the first half of 2025, at a cost of £153 million – with UK households feeling the impact of an exceptionally warm and sunny spring. Extreme heat is also increasing the risk of wildfires and lightning strikes.
Watch and phone thefts remain a threat, and are increasingly accompanied by aggression. Exercising caution in London and other hotspots – including southern Spain and the south of France – is critical. Similarly, as the October half-term and Christmas holidays approach, individuals are reminded of the need for vigilance at airports and train stations. Even brief moments of distraction, such as checking in, or loading kids and luggage into taxis, can be perfect for the opportunistic thief.
For more information, contact Rachel Gilliam (opens a new window).
Specialist Motor Insurance
The Specialist Motor Insurance market remains highly active but increasingly challenging. Brands such as Ferrari, Aston Martin and Porsche have all reported lower production and slower sales in 2025. However, the specialist sector is showing signs of stability, with vehicle prices now beginning to settle after several years of sharp fluctuations.
Theft continues to be a major concern, with criminals using increasingly advanced technology – such as relay attacks, key cloning, and tracker jammers. We continue to recommend high-quality immobilisers with button-press activation, rather than proximity systems that can be triggered from several meters away.
With regards to claims, a concerning trend – particularly at the lower end of the market – has seen some insurers opt for filler repairs instead of full-part replacements. On modern supercars, that approach can compromise both the structural integrity and long-term value of the vehicle.
Finally, Aviva’s acquisition of Direct Line has fuelled aggressive price competition in the direct market. While premiums may look attractive, it often comes at the cost of service, claims handling, and repair quality. The specialist market has been less affected, but it’s important to remember that when it comes to specialist insurance, cheaper rarely means better.
For more information, contact Tom Blanc (opens a new window).
Family Office
The market is currently in a more competitive phase, particularly for key covers like Professional Indemnity (PI), Directors & Officers (D&O), Crime, and Cyber Insurance. This means that well-managed Family Offices are generally benefiting from broader coverage, lower premiums, and increased insurer appetite – especially where strong controls and clean claims histories are in place.
Cyber Insurance has seen particularly notable premium reductions, with insurers actively competing for quality risks. However, this favourable environment is unlikely to last forever. A rising number of high-profile cyber incidents and frauds is driving claims activity, and could prompt a shift into harder market conditions.
At the same time, regulatory scrutiny is intensifying, with greater focus on governance, cyber resilience, and data protection – especially where Family Offices engage in investment management or hold board positions on underlying assets. Insurers are also becoming more stringent in assessing internal controls and risk disclosures.
There is growing interest in combined or blended policies to minimise gaps between covers such as PI, Crime, and Cyber, and many policies now include added benefits like crisis response and reputational risk support. Ultimately, this is a timely opportunity for Family Offices to review their programmes, address any potential blind spots, and take advantage of favourable market terms.
For more information, contact Andrew Young (opens a new window).
Special Crime Insurance
Special Crime Insurance buyers continue to enjoy attractive market conditions, thanks to readily available capacity. This is despite increasing geopolitical instability, which is driving rate increases in the region of 5–10%.
The market’s primary concern at present is the changing nature of security risks facing clients. Individuals are increasingly exposed online – either directly through their own company and social media accounts, or via those of family members. As a result, public figures, corporate leaders, and high-net-worth families risk becoming targets of fixated threats – such as blackmail, stalking and cyberstalking.
With extortion claims on the rise, the insurance market is adapting. Tailored coverages give clients access to response consultants, providing security advice for them and their families. Other products provide specialist PR costs, to help clients mitigate the reputational impact of issues such as like digital misinformation, damaging media exposure, or social engineering. The new coverages go beyond the traditional kidnap and ransom perils, and provide consultancy advice for a wider and ever-more tailored list of threats.
Given the soft market, it’s an opportune time to purchase these coverages. With plenty of capacity, buyers will find it easier to tailor coverages to meet their specific needs.
For more information, contact Helen Sandford (opens a new window).
Talk to us
At Lockton Private Clients, we understand that your lifestyle is exceptionally unique, so the insurance that protects it should be too. Our team of seasoned advisors go above and beyond to create bespoke insurance solutions that align perfectly with your individual requirements and aspirations. We meticulously analyse the intricate risks associated with affluent lifestyles and provide tailored coverage that leaves no stone unturned.
Further details are available via our Private Clients (opens a new window) page.
The above contents were originally delivered at a bitesize breakfast event, hosted by Lockton’s Private Clients team in October 2025. The breakfast brought together professionals from across the Private Clients space for food, coffee, and industry insights.
