US Home Insurers Report Significant Underwriting Losses in 2023

Sunday, 28 July 2024, 17:08

In 2023, US home insurers reported a staggering net underwriting loss of $15.2 billion, the largest loss since at least 2000. This alarming trend, according to AM Best, stems from an increasing population in disaster-prone areas, particularly in states like California, Texas, and Washington. These factors contribute to higher insured values due to more property developments in vulnerable regions. The growing risk from natural disasters emphasizes the need for strategic adjustments in the home insurance sector.
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US Home Insurers Report Significant Underwriting Losses in 2023

US Home Insurers Face Historic Loss

In 2023, property insurers experienced their worst net underwriting loss since 2000, tallying $15.2 billion. This figure more than doubled from the previous year's losses and highlights a concerning trend in the insurance sector.

Key Factors Influencing Losses

  • Population Growth: Areas vulnerable to natural disasters are seeing significant population increases.
  • Insured Values: Rising population leads to increased property development, thus raising insured values.
  • Vulnerability: Six states, including California, Texas, and Washington, accounted for half the country's population growth in the 2010s.

According to Christopher Graham, a senior industry analyst at AM Best, a growing population means a larger rise in real property development. This situation necessitates careful reevaluation of risk management strategies within the home insurance industry.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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