InsuranceEDGE | June 22, 2023 | BuildingMetrix

Written by WSRB | June 22, 2023

Welcome to your weekly newsletter with the updates you need to succeed in property and casualty insurance.

Hardened

The case for fire-resistant building codes is strong. As wildfires become more intense and frequent — especially in the western United States — more communities are considering them.

Fire-Resistant Homes Survive

As climate change drives increasingly intense, frequent wildfires, communities look into mandating measures that can protect homes but might increase construction costs.

Insurers Can Help Customers Mitigate Climate Change

Risk mitigation is taking preventative actions to reduce the likelihood of future claims, or reducing the severity of such claims: undertaking important repairs, managing encroaching vegetation and “hardening” homes.

Business

Progressive Rate Hikes

Progressive Insurance has announced another round of rate hikes for its customers in Illinois, increasing its auto insurance rates by 5% on average.

Allstate Cat Losses, Rate Hikes

The insurer released estimated catastrophe losses for the month of May of $885 million, plus auto insurance rate hikes – 9.3% across 15 locations.

Nationwide Pulls Back

The company is the latest to join the growing list of insurance giants taking action on new business, after it announced it would take steps to mitigate risk.

Environment

First 2023 Hurricane Expected

The third topical depression of the 2023 hurricane season has formed in the central tropical Atlantic and is expected to become a hurricane.

Canadian Blazes Test Firefighters

An out-of-control fire was advancing rapidly toward a logging road, tearing through an immense boreal forest with a force bewildering to a team of French firefighters.

Lightning Claims Close to $1B

Claims involving lightning in 2022 resulted in homeowners insurance payouts approaching $1 billion, according to the Insurance Information Institute.

Education

Homeowners Becoming Expensive

There’s no sign that the situation is going to get better any time soon: Homeowners insurance is becoming more expensive and, in many places, more difficult to find.

California Insurance "Crisis"

California still has about 115 companies offering home insurance, even following the departure of State Farm and Allstate.

Hailstorm Losses at $1B

The impact from a June hailstorm over Texas with baseball to softball-sized hail is expected to cause over $1 billion in insured losses.