Each year, LexisNexis® Risk Solutions publishes the U.S. Home Insurance Trends Report to provide an updated view of by-peril trends over the previous 12 months to help carriers make more informed business decisions. The report covers both weather and non-weather related perils along with date and geographically specific events such as hurricanes and wildfires that impact insurance claims trends.

The theme for this year’s report is tracking the unpredictable. Overall, all peril loss cost combined increased in 2020 by 6% compared to 2019. The risk in loss cost and frequency across all perils in 2020 are in line with the upward trend seen over the previous six years. Highlighted below are a few key weather-related findings as shared in the report.

  • Wind – 2020 saw an increase in loss cost, frequency and severity. Driving this increase were widespread damages in August caused by Hurricanes Isaias, Marco and Laura.
  • Hail – Hail claim frequency decreased in 2020, and overall frequency held steady. Catastrophe-related hail claims, however, were up 9.9% over 2019 numbers.
  • Water (Weather Related) – While storms brought flash flooding and property damage to Massachusetts in the first half of 2020, loss cost, frequency and severity all experienced a decrease compared to 2019 numbers.
  • Fire and Lightning – 2020 loss cost experienced a striking increase in August and September, with more than double the number of burned acreage seen in 2019.

Extreme weather events continue to have a notable impact on claims and loss cost. Carriers that rely only on their own data could be missing the complete picture and not see how their performance ranks in the overall market. By taking advantage of aggregated by-peril data – like that shown in the Home Trends Report – carriers can make better business decisions, create more accurate pricing, and reap the benefits of a healthier book of business. Download the 2021 LexisNexis U.S. Home Insurance Report today.