“Insurers are reworking their actuarial maps, confronting state regulations that cap rate increases and struggling with profitability,” Breanne Armstrong, director of insurance intelligence at J.D. Power, said. “For customers, this combination of steadily rising rates and sudden abandonment can create irreparable damage to brand loyalty and perceptions of trust.” Credit: sommart/Adobe Stock “Insurers are reworking their actuarial maps, confronting state regulations that cap rate increases and struggling with profitability,” Breanne Armstrong, director of insurance intelligence at J.D. Power, said. “For customers, this combination of steadily rising rates and sudden abandonment can create irreparable damage to brand loyalty and perceptions of trust.” Credit: sommart/Adobe Stock

The confluence of inflationary pressures, regulatory moves that challenge rate adequacy and a slew of natural catastrophes during 2023’s first half is pushing AM Best to revise its outlook for the U.S. home insurance sector to negative.

The first half of 2023 saw above-average natural catastrophe losses, as Hurricane Idalia hit multiple states on the East Coast, while California dealt with damage from atmospheric rivers and Hawaii saw one of the worst wildfires in state history.


NOT FOR REPRINT

© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Steve Hallo

Steve Hallo is managing editor of PropertyCasualty360.com. He can be reached at [email protected].  

More from this author

 

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2023 ALM Global, LLC. All Rights Reserved.