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Why have home insurance rates soared? A big part of the problem is that insurers buy reinsurance policies to limit their risks. After suffering a sharp drop in profits, reinsurers raised rates and cut coverage at the start of 2023. That hit home insurers, making it harder to manage their losses from storms and other extreme-weather events. Many of them passed on the higher costs and reduced coverage to their customers. While home insurers have struggled—the industry last year lost almost 11 cents for every dollar of premium written, according to S&P—reinsurers are enjoying their most profitable stretch in years. (WSJ)

𝗕𝘂𝘀𝘆 𝘄𝗲𝗲𝗸 𝗳𝗼𝗿 𝗟𝗹𝗼𝘆𝗱’𝘀 𝗮𝗺𝗶𝗱 ‘𝗼𝘂𝘁𝘀𝘁𝗮𝗻𝗱𝗶𝗻𝗴’ 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝘆𝗲𝗮𝗿 𝗮𝗻𝗱 𝗔𝘃𝗶𝘃𝗮 𝗿𝗲𝘁𝘂𝗿𝗻𝗶𝗻𝗴 Last week was a busy week for Lloyd's of London amid its best result since 2007, as underwriting profits rose to £5.9bn in 2023. This was more than double the £3.3bn posted in 2022. Improved investment returns contributed to better profits. Encouragingly, combined ratio improved 7.9 percentage points to 84%. A quieter year for hurricanes, improved pricing and more selective risk taking all helped performance. Chief Financial Officer Bukhard Keese called it an ‘oustanding year.’ The strong year financial performance coincided with key developments at Lloyd’s in 2023: ·    Lloyd’s announced its intentions for Blueprint 2, a digital transformation which will launch in April 2025. ·    In 2023, Lloyd’s also pushed forward with its London Bridge 2 project to attract alternative capital to the marketplace. ·    The Lloyd’s financial results came during the same week in which Aviva announced a return to Lloyd’s. Aviva’s return to Lloyd’s came via its acquisition of Probitas for £242m. The return of Aviva is a boost for Lloyd’s, as the company is the largest UK headquartered and domiciled business of UK general insurance. Speaking in Insurance Age, Chief Financial Officer, Jason Storah said Lloyd’s would give its UK brokers an expanded offering. He said: “We are going to be able to offer them optionality. We have size, scale and distribution relationships with those brokers that we think are advantageous.” The return of Aviva will be seen as another positive sign that London continues to remain an international hub for the sale of insurance and reinsurance. In February, Japanese insurer Mitsui Sumitomo said it would increase underwriting capacity at Lloyd’s by half to £3bn over the next five years. Lloyd’s Chief Executive John Neal told the Financial Times last year that he expected insurance spending to double in the next decade, driven by greater perception of risk such as banking failures and climate change. https://lnkd.in/d3cCy7xF #londonmarket #reinsurance #insurance

Why have home insurance rates soared? A big part of the problem - besides more extreme weather events and sharply higher building costs, not to mention fraud - is that insurers buy reinsurance policies to limit their risks. After suffering a sharp drop in profits, reinsurers raised rates and cut coverage at the start of 2023. That hit home insurers, making it harder to manage their losses from storms and other extreme-weather events. Many of them passed on the higher costs and reduced coverage to their customers. Since the start of last year, regulators have greenlighted a 26% home-insurance rate increase in Texas, one of 45 states to suffer a double-digit increase. While home insurers have struggled—the industry last year lost almost 11 cents for every dollar of premium written, according to S&P—reinsurers are enjoying their most profitable stretch in years. (WSJ)

Why have home insurance rates soared? A big part of the problem - besides more extreme weather events and sharply higher building costs, not to mention fraud - is that insurers buy reinsurance policies to limit their risks. After suffering a sharp drop in profits, reinsurers raised rates and cut coverage at the start of 2023. That hit home insurers, making it harder to manage their losses from storms and other extreme-weather events. Many of them passed on the higher costs and reduced coverage to their customers. Since the start of last year, regulators have greenlighted a 26% home-insurance rate increase in Texas, one of 45 states to suffer a double-digit increase. While home insurers have struggled—the industry last year lost almost 11 cents for every dollar of premium written, according to S&P—reinsurers are enjoying their most profitable stretch in years. (WSJ)

Why have home insurance rates soared? A big part of the problem - besides more extreme weather events and sharply higher building costs, not to mention fraud - is that insurers buy reinsurance policies to limit their risks. After suffering a sharp drop in profits, reinsurers raised rates and cut coverage at the start of 2023. That hit home insurers, making it harder to manage their losses from storms and other extreme-weather events. Many of them passed on the higher costs and reduced coverage to their customers. Since the start of last year, regulators have greenlighted a 26% home-insurance rate increase in Texas, one of 45 states to suffer a double-digit increase. While home insurers have struggled—the industry last year lost almost 11 cents for every dollar of premium written, according to S&P—reinsurers are enjoying their most profitable stretch in years. (WSJ)

* Why have home insurance rates soared? A big part of the problem - besides more extreme weather events and sharply higher building costs, not to mention fraud - is that insurers buy reinsurance policies to limit their risks. After suffering a sharp drop in profits, reinsurers raised rates and cut coverage at the start of 2023. That hit home insurers, making it harder to manage their losses from storms and other extreme-weather events. Many of them passed on the higher costs and reduced coverage to their customers. Since the start of last year, regulators have greenlighted a 26% home-insurance rate increase in Texas, one of 45 states to suffer a double-digit increase. While home insurers have struggled—the industry last year lost almost 11 cents for every dollar of premium written, according to S&P—reinsurers are enjoying their most profitable stretch in years. (WSJ)

U.S. personal auto insurers’ underwriting results should continue to improve in 2024, benefitting from substantial price increases and targeted non-rate underwriting actions amid a moderation of unusually high claims severity. However, the pace of profit recovery will vary as some larger, more proficient carriers have returned to underwriting profitability, while others may still post combined ratios above 100% in 2024. Learn more: https://ow.ly/fuS550QJzsT #FitchRatings #Insurance #AutoInsurance

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As home insurance rates climb, VIU by HUB stands ready to support homeowners by providing education and tailored, comprehensive coverage that fits their unique needs. With guidance from the VIU by HUB Advisory Team, comprised of state-licensed agents, your customers can navigate these changes with confidence, to protect their most valued asset. Learn more: https://ow.ly/b4bl30sH483 #homeinsurance

As home insurance rates climb, VIU by HUB stands ready to support homeowners by providing education and tailored, comprehensive coverage that fits their unique needs. With guidance from the VIU by HUB Advisory Team, comprised of state-licensed agents, your customers can navigate these changes with confidence, to protect their most valued asset. Learn more: https://ow.ly/vW2430sGaF8 #homeinsurance