Copyright © 2024 A.M. Best Company, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

2. Neighboritis: The Social Phenomenon Driving Up Insurance Costs

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Non-peak peril trends include inflation, exposure growth, suburban sprawl, deferred maintenance, building in the Wildland-Urban Interface, increased precipitation, extreme heat waves, and social phenomena like "neighboritis" and legal system abuse.

 

3. Incentivizing Policyholder Risk Mitigation

Primary insurers should take a comprehensive approach to mitigate non-peak peril risk.
 

6. Syndicated Programs Are a Solution for Non-Peak Peril Insurance Coverage

Customers are adjusting their deductibles and terms and conditions, either willingly or out of necessity, to purchase insurance due to inadequate coverage for non-peak perils.
 

5. "Quiet Record Year" Yields Huge Natural Catastrophe Insurance Losses

2023 was a "quiet record year" with $93 billion in total insurance losses related to natural catastrophes, despite no major headline storms.
 

8. Clients Demand Clarity on Insurers' Risk Assessments

The primary question clients ask is about the insurance company's view of risk, particularly because there is no standard approach to pricing, capacity, or terms and conditions for non-peak perils.
Copyright © 2024 A.M. Best Company, Inc. and/or its affiliates. ALL RIGHTS RESERVED.