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

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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.

 

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.
 

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.
 

10. Simple Actions by Homeowners Help Boost Community Resilience

As trends continue, policyholders are likely to face higher prices, decreased coverage availability, and increased risk retention through higher deductibles. To mitigate these issues, resilience measures are essential.
 

3. Incentivizing Policyholder Risk Mitigation

Primary insurers should take a comprehensive approach to mitigate non-peak peril risk.
Copyright © 2024 A.M. Best Company, Inc. and/or its affiliates. ALL RIGHTS RESERVED.