New Conning Report Examines Evolving Challenges Threatening U.S. Homeowners Insurance Market and Ideas for Path Forward

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Oct 24, 2024, 09:00 ET

HARTFORD, Conn., Oct. 24, 2024 /PRNewswire/ -- A new report from Conning sheds light on the ongoing crisis in the homeowners insurance sector, emphasizing the impact of evolving natural catastrophe threats and increasing risk exposures. The research outlines key trends and provides an in-depth analysis of the pressures faced by insurers in today's volatile environment.

"The increase in natural catastrophe losses is not solely due to primary perils such as hurricanes," said Alan Dobbins, a Director in the Insurance Research group at Conning and the report's author. "Instead, secondary perils—smaller-scale events like severe convective storms, floods, and wildfires—have become a significant source of annual catastrophe activity. The insurance industry, therefore, is focusing new attention on these secondary risks, which historically have been underappreciated but are now proving to be just as problematic as major events."

In addition, rising population densities, inflation, and economic development have significantly amplified the damage caused by such events. In response to emerging pressures, Dobbins explained that insurers are taking steps to manage in the current environment. Rate increases and underwriting restrictions have been common responses, but another significant market response has been to pullback from certain high-risk areas altogether.

Looking ahead, it is clear that the homeowners insurance industry cannot continue its current trajectory without significant changes. The Conning study "Crisis in Homeowners Insurance" outlines the elements of a way forward.

"The industry has managed through equally challenging times," Dobbins added, "but it will be important for insurers to lead on developing a risk management-based solution to the crisis before the legislators and regulators assume control."

"Crisis in Homeowners Insurance" is available for purchase from Conning by calling (888) 707-1177 or by visiting here.

ABOUT CONNING

With a long history of serving the insurance industry, Conning (www.conning.com) supports institutional investors, including insurers and pension plans, with investment solutions, risk modeling software, and industry research. Founded in 1912, Conning has investment centers in Asia, Europe and North America. Conning is part of the Generali Investments platform, which has approximately $740B in assets under management.

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SOURCE Conning, Inc.