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

8. Clients Demand Clarity on Insurers' Risk Assessments

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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.

 

3. Incentivizing Policyholder Risk Mitigation

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

9. Policyholders Become Their Own Risk Managers

The insurance industry is increasingly communicating with policyholders and the public about non-peak perils as more severe events and losses occur.
 

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.
 

2. Neighboritis: The Social Phenomenon Driving Up Insurance Costs

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