Analysts believe social inflation is the combined product of socioeconomic, legislative, and litigation factors that spark more frequent, sizeable, and sometimes unnecessary claim payouts. Whatever the primary drivers, social inflation is shifting loss ratios for insurers and disrupting forecasts, rendering cost management more challenging.
As you strive to find the best rates for your homeowners and auto coverage, you might think shopping around is the way to manage affordability. However, costs are increasing for everything–groceries, gasoline, and other household expenses–and so are costs for insurers that impact your premiums. Before changing your policy or carrier, consider some factors that can affect your rates and learn how an annual insurance checkup can position you to get the coverage right for you.
Flood is no longer an “untouchable” risk for private insurers. In fact, data suggests insurers see it as a growing area of opportunity. That’s good news for homeowners who understand the evolving nature of the peril.
For decades, FEMA’s National Flood Insurance Program (NFIP) was practically the only available option for homeowners to obtain flood coverage. Improved data, analysis, and modeling have helped drive increased private-sector interest in flood-risk transfer and mitigation.
Purchasing a home can be an exciting event that can also come with new responsibilities and questions, especially for first-time buyers. One primary challenge is having a sound financial plan to pay repair or rebuilding costs if the house becomes damaged by peril–fire, earthquake, storm, etc.
In recent years, workers compensation insurance has been the most profitable property/casualty line of business, having experienced its sixth consecutive year of combined ratios under 90 and its ninth straight year of underwriting gains. While the broader industry has suffered, workers comp has benefited from a generally strong economy and, in particular, strong growth in payrolls.
A distinguishing feature of the 2023 Atlantic hurricane season is a tug-of-war between a shift from cool- to warm-water conditions in the central Pacific Ocean and exceedingly warm tropical Atlantic waters. These warming conditions are part of a global pattern that is now outpacing anything seen in four decades of satellite observations.
Several forces – including construction costs that outpace inflation, growing natural catastrophe exposure, and more costly reinsurance – are converging to put upward pressure on property/casualty insurance premium rates across the United States.
Guiding Principles for Triple-I Insurance Economics
Triple-I Insurance Economics and Data Analytics is the go-to-destination for data-driven insight into the relationship between economics and insurance performance. Led by our Chief Economist and Data Scientist, Dr. Michel Leonard, CBE, the practice aims to provide Triple-I members, industry stakeholders, and the general public a one-stop resource for property/casualty (P/C) data-driven insight including: