Al3x Lee
Guru
- 957
An interesting article was published a couple of weeks ago by the American Property Casualty Insurance Association (APCIA). It examines that this is the hardest property market in a generation. https://www.apci.org/media/news-releases/release/75202/
For me, this solidifies my belief that the crisis is primarily caused by the current American culture and climate change. Unfortunately, these problems are likely to get worse. There seems to be plenty of sentiment among the general public and politicians that we can regulate our way out of these things.
“The U.S. property casualty insurance industry is facing significant pressure from rising economic inflation, legal system abuse, supply chain constraints, increasing catastrophic weather driving up losses, and historic cost increases for reinsurance and other forms of capital,” said Karen Collins, APCIA vice president, property and environmental. “The combined effects are resulting in the hardest market cycle in a generation. Commercial and personal property lines customers, particularly those in high-risk regions, may feel the effects of recent, elevated cost trends.”
For me, this solidifies my belief that the crisis is primarily caused by the current American culture and climate change. Unfortunately, these problems are likely to get worse. There seems to be plenty of sentiment among the general public and politicians that we can regulate our way out of these things.
“The U.S. property casualty insurance industry is facing significant pressure from rising economic inflation, legal system abuse, supply chain constraints, increasing catastrophic weather driving up losses, and historic cost increases for reinsurance and other forms of capital,” said Karen Collins, APCIA vice president, property and environmental. “The combined effects are resulting in the hardest market cycle in a generation. Commercial and personal property lines customers, particularly those in high-risk regions, may feel the effects of recent, elevated cost trends.”
- The price of single-family residential home construction materials have climbed 33.9 percent since the start of the pandemic, while trade services are up 27 percent.
- 2022 was the eighth year in a row the U.S. suffered at least 10 catastrophes causing over a billion dollars in losses.
- 2022 combined ratio for U.S. homeowners line is estimated to reach 107.9 precent, as insurers paid out more money to cover losses and expenses than they collected in premiums.
- A.M. Best noted personal lines (auto and homeowners) incurred an estimated underwriting loss of $34.9 billion in 2022, nearly tripling the prior-year level and driving an industry five-year high underwriting loss.
- The U.S. property casualty insurance industry’s policyholder surplus fell 9.4 percent in 2022, according to A.M. Best, and is likely to be the largest drop since early 2009, according to S&P.
- Reinsurance broker Guy Carpenter estimates that property-catastrophe reinsurance prices rose 30.1 percent in 2023, following a 14.8 percent increase in 2022.
