One of the most pressing challenges facing insurance professionals today is the escalating impact of extreme weather events in traditionally disaster-prone areas. Last year alone, the U.S. witnessed a staggering $92.9 billion in weather-related damages, making it a record-breaking year for destruction and financial losses.
The increasing frequency and severity of extreme weather has drastically reshaped the industry, prompting a fundamental reassessment of risk management strategies.
The housing market has heavily felt the substantial effects of evolving weather patterns. In addition to climate change, inflation and supply chain issues have driven damage and repair costs to exponential highs, making homes more expensive to insure.
Consequently, homeowners are making more expensive claims for damage to their home and paying larger premiums to secure adequate coverage. Understanding the magnitude of changes to risk assessments is crucial for insurance professionals, as it directly impacts consumers, markets and the broader economy.
The shifting insurance landscape
Insurance professionals should brace for the hard market conditions that are poised to reach new regions and…
