The regularity of severe weather and fire events across the US last year led to the US natural hazard & fire insurance market paying out more in claims than it received in premiums in 2020. As wildfires continue to rage in California and the recently published U.N. Intergovernmental Panel on Climate Change (IPCC) report warning of ‘code red for humanity’ with increasingly extreme heatwaves, droughts and flooding becoming the norm over the next decade the current trend of increased pay outs is likely to continue at an unsustainable level.
Ben Carey-Evans, Insurance Analyst at GlobalData comments: “The immediate concern for the insurance industry (and people living in areas of high risk) is whether they are becoming uninsurable. This could be disastrous for homeowners, who will have to take on the risk themselves and are likely to see the value of their homes plummet. This is likely to be a problem replicated around the world, whether it is areas at similar risk in Australia or places at risk of flooding.”
The US ($58bn) is the largest insurance market for weather events, accounting for over double the GWP of second-placed Japan ($22bn) in 2020.
Six of the top 10 most costly weather events globally in 2020 happened in the US, which emphasizes the scale of the market, as well as the risk insurers face writing personal and commercial property cover in many states across the country.
Reasons to Buy
Benchmark yourself against the rest of the market.
Understand how competitors are dealing with the climate crisis, and how it is impacting insurance premiums and claims around the world.
Ensure you remain competitive by identifying key threats.
Aviva, AXA, Neos, Allianz, FloodFlash, Ping An, Zurich, Zesty, Munich Re, Swiss Re, AIG, Tokio Marine, Covea, Gen Re, Legal & General, RSA, SCOR, Zurich
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