Nicole Kehl, CIC, CISR, STAR’s Post

Weather conditions are worsening in six critical states, representing 53% of the nation's population growth. Unfortunately, these states are also experiencing severe weather-related events. Insurers now face the tough decision of whether to de-emphasize writing in these areas or exit certain markets due to concerns over rate adequacy. #Insurance #Weather #MarketAnalysis https://lnkd.in/g_65fRiG

US home insurers saw their biggest loss in 20 years in 2023 due to natural disasters, inflation, and growing populations in risky areas. Read more here. #Home #Insurance

 We wish we were surprised. We don’t mean to be all doom and gloom, but we feel it’s our responsibility to keep you informed about how the market is doing. Transparency is important in building our relationships. The market is still not fully recovered and rates probably haven’t finished increasing for the foreseeable future.  This is because of the massive losses' insurance companies have been experiencing. This year alone was record-breaking, a net loss of 15.2 billon in just the homeowner’s sector. This trend continues because of the unfortunate mix of increase in both natural disasters and inflation. In addition to that, the population of high-risk areas continue to grow, causing even more pressure on underwriting.  Despite whatever shape the market, might be in, we’re always here to help you navigate through your insurance needs. We’re always be more than your agents, we’re your guides.  #floridainsurance #southfloridainsurance #insurancecosts #insuranceavailability #insurancechallenges #insurancemarketupdate #insuranceindustrynews https://lnkd.in/eJQhTqd2  

The U.S. homeowners insurance segment suffered a $15.2bn underwriting loss in 2023, more than double the previous year’s loss and the worst since at least 2000, according to AM Best. The rise in losses is linked to population migration into cat-prone areas, with six states accounting for 53% of the national population growth from 2010 to 2020. Insurers in the South Atlantic and Southern regions, including FL and the Gulf Coast, reported combined ratios over 92, while regions like New England had more favorable ratios. Climate risks and population shifts, along with restrictive regulations and a tightening reinsurance market, are expected to keep pressure on underwriting profitability, according to AM Best.

(Gift article): "In 2023, insurers lost money on homeowners coverage in 18 states, more than a third of the country, according to a New York Times analysis of newly available financial data. That’s up from 12 states five years ago, and eight states in 2013. The result is that insurance companies are raising premiums by as much as 50 percent or more, cutting back on coverage or leaving entire states altogether. Nationally, over the last decade, insurers paid out more in claims than they received in premiums, according to the ratings firm Moody’s, and those losses are increasing." Besides personally living through this by having to replace homeowners coverage in California expiring July 1st, I'll be writing about what sellers, buyers, landlords and tenants can do to educate themselves about the emerging risks from climate change. #climatechange #globalwarming #homeownersinsurance #insurancecrisis #nytimes #usnews #housingmarket #economy #climateshocks

It's great to see this on the front page of the FT site. This is a topic I will continue going on about - and it's such an important one for so many reasons. It's one for which there are no easy solutions, and difficult public conversations need to be had. Getting it right, whatever that looks like, will be critical for our communities and economies. Ignore it and it's going to cost - directly and indirectly - in so many ways. For example, in Australia there's a very real affordability crisis meaning that many households are underinsured or not insured, quite often those with fewer resources to access if something does go wrong. We need to be having conversations about this - with communities, with the insurance industry, with business and others. #builtenvironment #realestate #insurance Financial Times Alex BeerAlice Haugh Paul Wilson

Truly, an uninsurable home isn't great! The impact of climate change has had and continues to have major influence on the capacity of the insurers to accept certain risks; especially with the increasing use of technologies to map the risk factors. While the market may attempt to innovate in order to meet the growing needs of special policyholders, the pricing model makes such innovation go out of the reach of their targeted buyers. Generally, all risks to be covered by insurance are deemed to be fortuitous in nature, but climate change has increased the certainty of some risk exposures! What's the potential solution? As we always said in classical insurance teaching: Cat risks are for the governments only. Therefore, governments must step into the crisis and provide some form of social welfare which can mitigate the impacts of the climate change exposures whenever they occur. In the world of shortage of infrastructure what's so sad is to have houses that no one is willing to live in - because they are simply unliveable! #Praveen Gupta #climatechange #Davistherbrokerslimited

Insurers providing policies to homeowners suffered a $15.2bn net underwriting loss last year, according to figures from rating agency AM Best, a figure it said was the worst since at least 2000 and more than double the previous year’s losses. The figures lay bare the underwriting conditions that have sparked a pullback by US insurers from disaster-hit areas, either exiting markets or driving up prices, creating an affordability crisis for many homeowners

A good perspective on my home insurance rates continue to increase.

The LexisNexis Risk Solutions report highlights a 4.1% rise in U.S. homeowners’ insurance loss costs from 2022 to 2023, with hail damage costs escalating by 57.9%. Catastrophic claims, influenced by climate events, made up 46% of all-peril claims in 2023. Key affected states include Colorado and Hawaii, where loss severity surged. Insurers are increasingly reliant on long-term data to adjust pricing strategies amid growing geographic and seasonal variability in claims. https://lnkd.in/g_6HpWZs