Catastrophe claims can have a dramatic effect on certain states, especially those that tend to experience severe wildfires, hurricanes and hailstorms. In 2018, more than half of all catastrophe claims in the United States came from just four states: California, Colorado, Florida and North Carolina. To stay competitive and protect your business, it’s more important than ever to have updated peril-related home trends data available.
We recently published the 2019 LexisNexis® Home Trends Report, which provides insights gathered from a broad and comprehensive dataset to help you assess your business in relation to the overall market.
Here are just a few highlights from Accident Year 2018 found in the Home Trends Report:
- Catastrophe fire claims accounted for nearly 40% of fire losses – the highest in a decade.
- Extreme weather (Hurricane Florence, Hurricane Michael and California wildfires) contributed to a 17% increase in all peril severity.
- The catastrophe claims stayed above 30% of total claims for the third year in a row.
- Wind loss cost saw a decrease in frequency, but severity continues to increase.
To properly manage risk, carriers must understand by-peril and macro-level trends and determine how these insights can impact pricing and other portfolio-level decisions. The 2018 Home Trends Report highlights challenges faced by home insurance carriers when managing by-peril risk.