The Private Client market has experienced significant increases in recent years, driven by indexation/inflation and insurer’s rate increases. And while these increases are softening, insurers remain very selective on the risks they underwrite.
As such, focus migrates to risk prevention through proactive measures and management. Adequate physical protections and prudent behaviour are now expected by insurers. Policyholders unable or unwilling to comply, will suffer limited market and, potentially, penal terms. For clients, upfront investment in deterrence and mitigation, plus on-going maintenance and monitoring, makes their risk more attractive to insurers.
In our March 2026 update, our Private Clients experts share their latest assessments on the Household, Aviation, Performance, Cyber, Worldwide Travel, and Special Contingency insurance markets.
Household Insurance
Based on 2024 claims data, the following list explores the most pressing issues within the household insurance market:
Water damage
Escape of water is the most common type of claim, accounting for one-third of home insurance claims in the UK, with burst pipes leading to £153 million (opens a new window) in damages. Claims related to HNW properties can affect buildings, contents, and valuables and run into millions of pounds for a variety of reasons. Repairs can be costly due to shortage of appropriate labour, and finding suitable alternative accommodation can be challenging. Furthermore, future insurance premiums can be high as many insurers are hesitant to quote for risks where there’s been a loss in the last 12 months. Both retrofitting water leak detectors and leaving central heating on a low setting throughout the colder months can help reduce risks.Flooding
Weather-related damage claims totalled £573 million in 2024 (opens a new window), largely a result of flooding (£286 million) and storm damage (£133 million). And as the frequency of extreme weather events increases, so does the associated costs to repair damage. To enhance mitigation, policyholders should consider green/porous landscaping, non-return valves on toilets, and anti-flood airbricks.Theft
Theft-related claims accounted for 14% of total claims (opens a new window). For clients looking to improve security, a combination of deterrence, layering, and prudent behaviour is key. This can be achieved through physical and electronic protection, surveillance, and security marking items to make them difficult to dispose of. In over 50% of domestic burglaries, someone was at home.Further risks
Fire damage comprised 17% of claims (opens a new window). Clients should be mindful of fire originating from wildfires or thermal runaway from either lithium batteries or electric vehicle charging. Furthermore, due to ongoing economic uncertainty and geopolitical conflict, the prices of precious metals have experienced extreme volatility. Clients possessing jewellery and gold or silver, may now have inadequate valuations under their insurance policies – this should be reviewed to ensure valuations are in line and up to date.
For more information, contact Rachel Gilliam (opens a new window)
Special Contingency 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%.
Currently, the market is primarily concerned with the changing nature of security risks facing clients – particularly online. Social media activity is increasingly exposing public figures, corporate leaders, and HNW families to fixated threats – such as blackmail, stalking, and cyberstalking. With extortion claims on the rise, the insurance market is adapting, and tailored coverage offers clients access to services that go beyond the traditional K&R perils. Policies can provide response consultants for security advice, and specialist PR help to mitigate reputational damage.
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 Charlie Tear (opens a new window)
Cyber
Conditions in the cyber insurance market remain largely favourable to buyers, with pricing flat to modestly down and insureds able to negotiate improvements to policy language.
Growth prospects for cyber insurers remain constrained, as the pool of net new buyers has largely plateaued. With stable coverage and increasingly attractive pricing, most insureds are sticking with incumbent carriers, amplifying competition within the market.
Still, underwriters are acutely focused on several emerging issues shaping the risk environment, including:
Systemic risk and aggregation exposure
Cloud outages, software and supply chain dependencies, and concentration in key service providers could generate correlated losses.AI-driven litigation and regulatory risk
The rapid adoption of AI is introducing new, often “silent,” exposures, including privacy, copyright, discrimination, and operational risks.Business interruption disputes
As cyber events increasingly disrupt operations, disagreements over insured versus uninsured downtime are becoming flashpoints.
For more information, contact Paula Treacy (opens a new window)
Aviation
The aviation insurance market finds itself in a precarious position. Major and unprecedented claims that have recently hit the market have been met with a new wave of geopolitical instability and abundant capacity. Greater underwriting scrutiny has resulted in (depending on the operation or location of the insured) capacity that can quickly overwhelm or disappear on a placement.
Currently, the sector most affected is the ‘All Risks’ placements. Reinsurers are pushing for premium increases of up to 20%, whilst direct insurers are hoping to increase premiums by around 15%. General Aviation and Products risks are seeing flat to small increases. Claims stemming from the Russia–Ukraine conflict and high-profile airline incidents have wiped out years of earned premium. Some insurers have exited and/or consolidated in the aviation sector further complicating the market’s exposure to aviation risks.
The events unfolding in the Middle East have given insurers reason to further scrutinise coverage they are providing in the region. Some insurers have stated that there is a material change to risks in the region which has given them the right to review, while others are stipulating they must be notified of any flights into the area for individual review.
There are many future challenges for the aviation industry, these include: aircraft and engine shortages, high staff turnover, and sustainability solutions.
For more information, contact Hugo Hentenaar (opens a new window)
Specialist Motor
After a profitable 2024, the UK motor insurance market is expected to move back into marginal and then negative underwriting territory, over the next two years. This could drive a harder motor market – resulting in premium increases across the board and more focussed attention on underperforming sectors, and, potentially, some insurers withdrawing from writing certain risks.
Specialist car values
Over the past year, the classic and specialist car market has experienced a price reduction of around 10% – largely due to a high supply of these vehicles in Europe. However, even in a downturn, standout cars are still achieving strong prices. While buyers are selective, they do not want to pass up the ‘right car’. For example, unicorn cars, such as the Ferrari F50 and Ferrari Enzo, have surged to recent highs. Furthermore, the new generation of buyers has also given rise to distinctive and less common brands, such as Ruf Porsche and Koenigsegg.Theft
As vehicle security becomes more sophisticated, key theft is becoming the primary issue in major conurbations, such as London and Birmingham. In response to JLR’s security update, criminals are instead targeting SUVs from Lexus, Bentley, Mercedes, and Porsche. Layering security on top of the manufacturer’s system, such as aftermarket deadlock immobilisation, or physical security measures, such as a steering wheel lock, is strongly advisable.Market news
Last year, the FCA ruled that some direct insurers must pay around £200 million in compensation to around 270,000 drivers for underpaid claims. The investigation found that some insurers were making automatic, unjustified deductions for pre-existing damage, and failing to accurately reflect the market value of vehicles. This issue highlights the importance of agreed value policies, and at Lockton, by agreeing the value of the vehicle at policy inception, clients have peace of mind knowing the exact amount for potential claims.
For more information, contact Thomas Blanc (opens a new window) and Simon Ambler (opens a new window)
Worldwide Travel
While most HNW household insurance policies include an element of travel insurance, the quality of cover varies significantly between carriers. For many clients the standard protection offered is sufficient, but for those with specialist requirements, it can leave important gaps.
Pre‑existing medical conditions remain one of the most common reasons for declined claims. Crucially, this does not only apply to the traveller. If a relative has a known medical condition, is unwell, undergoing tests, or awaiting results, this can affect the ability to claim for cancellation. And even if the traveller is perfectly healthy, a relative’s undisclosed condition can invalidate a claim. This is the single most frequent reason insurers decline cancellation claims.
Pricing is becoming more sensitive to risk, and the fine print matters more than ever. Further common gaps clients should be mindful of include: activity exclusions (skiing, diving, trekking, or climbing), end supplier failure exclusions, and government travel advisories invalidating cover.
Insurers are tightening wording, and travellers who assume “everything is covered” are often the ones caught out. The smartest approach is simple: check the cover, not just the price – the cheapest policy is rarely the safest.
This is where Lockton’s access to specialist markets becomes valuable, with bespoke solutions designed for:
Travellers with medical conditions
High‑risk locations or adventure travel
Expatriates and long‑term overseas stays
Families needing wide‑ranging cover including wedding travel overseas
Travellers requiring End Supplier Failure protection
Excess layer top‑up travel insurance for once‑in‑a‑lifetime trips
For more information, contact Tracy Jenkins (opens a new window)
Conflict in the Middle East: client advice
The conflict in the Middle East is causing major travel disruption, including cancelled flights and closed airspace. War and conflict are generally excluded under travel insurance, so most policies will not cover cancellation or curtailment. Some HNW insurers may review claims individually, but this is not guaranteed.
Key guidance:
Check FCDO advice before travelling.
For future trips: monitor the situation closely and check flight status with your airline or travel provider.
If you are already in an affected region, follow instructions from your airline or travel provider. They will arrange return travel once airspace reopens. Do not go to the airport unless told to.
If you have booked a package holiday, ABTA/ATOL tour operators are responsible for getting customers home, usually by arranging alternative flights.
Repatriation and support: In situations involving civil unrest or war, ATOL manages repatriation, and ABTA members often provide additional assistance to ensure traveller safety.
Talk to us
At Lockton Private Clients, we understand that your lifestyle is exceptionally unique. Our team of experienced advisors create bespoke insurance solutions that align perfectly with your individual requirements and aspirations.
Further details are available via our Private Clients (opens a new window) page.
The above contents were originally delivered at breakfast events, hosted by Lockton Private Clients, in February 2026 in Birmingham and March 2026 in London. The sessions brought together professional advisors from across the Private Clients industry.