Hanover Insurance Renewal Prices Rise in Third Quarter
Policyholders in personal and commercial lines see average rate increases of up to 8.7% following rising catastrophe losses.
Updated on Oct. 29, 2026 in Insurance
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Worcester-based Hanover Insurance Group reported a combined ratio of 100.5% for its Core Commercial segment in the third quarter of 2026, driven by rising catastrophe losses. Policyholders in personal and commercial lines saw average renewal price increases as the company prioritized profit margins.
Why it matters
The company increased renewal prices by an average of 7.4% for Core Commercial and 8.7% for personal lines, reflecting a shift to prioritize margins over volume. These shifts impact household and business budgets as the insurer attempts to offset significant catastrophe-related claims.
Hanover Insurance Group reported a 100.5% combined ratio for its Core Commercial segment, up from 97.3% in the prior year. Personal lines renewal prices grew by an average of 8.7% as the insurer faced $109.7 million in total company catastrophe losses during the third quarter.
The players
Hanover Insurance Group
A Worcester-based insurance provider offering commercial and personal coverage whose pricing impacts household and business budgets.
The details
The insurer's combined ratio exceeded 100%, indicating that it paid out more in claims and expenses than it earned in premiums for its commercial segment. To manage these losses, the company raised renewal pricing above industry benchmarks. These costs ultimately pass to policyholders through higher renewal premiums on existing coverage.
Timeline
Hanover Insurance Group reported its Q3 2026 financial results.
Money Landscape
Insurers are increasingly adjusting renewal pricing to navigate heightened catastrophe loss activity compared to historical norms. This development follows a wider trend of providers prioritizing margins in response to volatile environmental and liability claims.
Policyholders should prepare for potential increases in renewal premiums as the insurer continues to prioritize profit margins over total volume. Review your policy renewal notices closely to determine how these average rate adjustments specifically impact your personal coverage costs.
The takeaway
Rising catastrophe losses are driving insurance providers to lift renewal prices for policyholders. Speak with a qualified professional to review your coverage options if your current policy renewal reflects significant cost increases.
Further reading
For more on managing premiums, see Insurance.
Source note: This article includes information reported by Insurance Business.
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