HNW INSURANCE MARKET NOTES - MARCH 2024

RETRENCHING

A year after recording the largest underwriting loss in the company’s 100-year history, State Farm eclipsed it in 2023.  The underwriting loss figure climbed to $14 billion for 2023, with a nearly $5 billion underwriting loss for property lines outpacing almost $4 billion of improvement in State Farm’s auto results.

This article will explain the details on key developments that could shape the insurance industry's future, affecting individuals and businesses alike. Addressing noteworthy changes, potential challenges, and offers a comprehensive perspective on the evolving insurance landscape at the national level.

NOT JUST A CALIFORNIA PROBLEM

Wildfires continue to burn across Texas, the largest of which has burned over one million acres alone and is only 15% contained, while officials said at the weekend that more than 500 structures have been destroyed and re/insurers will already be looking at the potential to subrogate claims in future, as an electrical utility has been sued over starting the largest fire.

Gain critical insights into the aftermath of Texas wildfires in the latest article from Artemis. The article details the destruction of 500 structures, encompassing a residential exposure of $356 million. Uncover the intricacies of a utility being sued amid these environmental challenges. Stay informed about the impacts, developments, and implications of the Texas wildfires by reading the full article.

BREAKING POINT

A survey by the Insurance Information Institute last year found 12% of homeowners had no insurance, up from 5% four years earlier. Going without coverage is risky, though, for both individuals and communities.

Explore the connections between natural disasters, inflation, and the escalating costs of auto and home insurance premiums in this NPR article. The piece sheds light on the factors influencing the rise in insurance expenses and broader economic implications. Examening the intersection of natural disasters and inflationary pressures adn how these dynamics affect the affordability of insurance. Equip yourself with an understanding of the forces shaping insurance premiums amidst evolving environmental and economic challenges.