Homeowners Insurance: Is a Minnesota Meltdown Coming?

This PowerPoint report, presented by Robert Hartwig, president of the Insurance Information Institute, before the Insurance Federation of Minnesota, discusses whether the world in general and Minnesota in particular are becoming riskier places. The focus of the presentation is on global and U.S. economic and political concerns and catastrophe losses, and their implications for the insurance industry and policyholders. A section reviews profitability and growth in Minnesota’s homeowners insurance market as well as in other lines and how Minnesota compares with other states. Another section looks at Minnesota’s catastrophe loss history, noting that while it may not be a coastal state, Minnesota is no stranger to catastrophe. In 2011, through October 25, the state experienced 552 severe weather reports, including 30 tornadoes, 192 incidents of hail and 330 wind reports. The presentation also shows that in 2008 Minnesota ranked third behind Texas and Louisiana in highest insured catastrophe losses. The report concludes with comprehensive U.S. and global insured catastrophe loss updates.