The private client insurance market entered 2026 shaped by a period of sustained disruption. Catastrophe losses, rising reinsurance costs, evolving liability trends and changing carrier appetites continue to influence how coverage is structured and priced in the high-net-worth space.
Gallagher's latest Private Client State of the Market report reveals that despite these pressures, there are signs of resilience as insurers, advisors and clients adapt with improved risk mitigation and coverage optionality to create individualized programs.
Climate risk continues to influence the market
The 2025 California wildfires reinforced how exposed affluent homeowners remain to climate-related events, while perils such as flooding, hail and severe storms are expanding into regions traditionally viewed as lower risk. The increased frequency and breadth of smaller (aka "secondary" perils) is challenging historical underwriting assumptions and leading to more selective deployment of capacity.
Underinsurance is a growing concern
Against this challenging backdrop, the gap has widened between insured values and actual replacement costs, particularly for custom homes and unique properties. Inflation, rising labor costs, complex AV systems and premium building materials continue to push reconstruction expenses higher, emphasizing the importance of maintaining accurate valuations as a critical component of long-term protection.
Emerging liability exposures demand protection beyond property
Personal liability exposures continue to expand as social inflation, litigation funding and increasingly large jury awards drive higher claim severity — necessitating greater excess and umbrella limits. Importantly, liability risk today extends well beyond auto. It can arise from a wide range of lifestyle exposures, including yachts and boats, social host liability, dog ownership, and everyday risks associated with "toys" such as pools, ATVs and other leisure assets.
At the same time, cyber threats have become a leading concern, with affluent households facing heightened exposure to fraud, data breaches and digital extortion.
As risk profiles grow more complex, insurance strategies must evolve accordingly. In this segment, insurance is fundamentally viewed as a tool for wealth preservation — requiring customized liability programs, higher limits and specialized coverage structures to adequately protect both assets and lifestyle.
Preparedness, innovation and alternative solutions are creating a competitive advantage
In a market where access to capacity is increasingly tied to risk quality, the most successful outcomes will belong to clients who invest in mitigation, maintain accurate documentation and approach insurance as a strategic component of wealth preservation rather than a transactional necessity. Proactivity is being rewarded.
Innovation and alternative coverage options are becoming more important as growth in the excess and surplus market creates flexibility where traditional capacity is constrained. Captive solutions are also gaining traction in the personal insurance space, with Gallagher's Private Client Signature Captive standing out as the only multi-member captive in the market, offering greater control, long-term stability and the potential for improved financial outcomes.