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