Crisis in Homeowners Insurance - 2024 Focus Report


Price : $1,500.00



One of the most significant drivers of the current crisis in the homeowners insurance industry is the escalating impact of natural catastrophes. Historically, natural disasters have always posed a risk to insurers, but the losses from these events have dramatically increased in recent years. From 1991 to 2016, losses from natural catastrophes averaged 3.9% of the industry’s direct premiums written. However, in the past seven years, this figure has more than doubled to an average of 8.5%.

 

The increase in natural catastrophe losses is not solely due to primary perils such as hurricanes. Instead, secondary perils—smaller-scale events like severe convective storms, floods, and wildfires—have become a significant source of annual catastrophe activity. The insurance industry, therefore, is focusing new attention on these secondary risks, which historically have been underappreciated but are now proving to be just as disruptive as major events.



  1. Introduction

  2. Setting the Stage

  3. California Problem

  4. Midwest Problem

  5. The Present Situation in Context

  6. How Should Insurers Respond?