According to a recent Moody's Personal Lines Outlook, Homeowners' insurers were profitable through the first half of 2015 after two straight profitable years in 2013 and 2014. Homeowner's insurers have benefitted from continued rate increases, although Moody's notes these increases are slowing — from 7% in 2013 to 5.4% in 2014, to about 4% expected in 2015, partly because of lower catastrophe reinsurance costs.
The Moody's report notes that insurers have been adopting “more sophisticated by-peril rating plans to better align premiums to specific perils,” such as wind, fire, hail, lightning and theft. “Assuming it is well-executed,” the report continues, “the multivariate approach should improve pricing efficiency and reduce earnings volatility.”
Below, a summary of Homeowners' insurance findings from SNL Financial, Moody's and Munich Re. Click image to expand.
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Shawn Moynihan
Shawn Moynihan is Editor-in-Chief of National Underwriter Property & Casualty. A St. John’s University alum, Moynihan has earned 11 Jesse H. Neal Awards, the Pulitzers of the business press; seven Azbee Awards, from the American Society of Business Press Editors; two Folio Awards; and a SABEW award, from the Society of American Business Editors & Writers. Prior to joining ALM, he served as Managing Editor/Online Editor of journalism institution Editor & Publisher, the trade bible of the newspaper industry. Moynihan also has held editorial positions with AOL, Metro New York, and Newhouse Newspapers. He can be reached at [email protected].
