The Industry Strikes Back

The U.S. Senate Budget Committee on Wednesday held a hearing to release a study they said confirms climate change is increasing non-renewal rates in multiple states, but the insurance industry clapped back by saying extreme weather is just part of the problem.

Read the Article: Senate Says Climate Is Causing Insurance ‘Crisis’; Industry Strikes Back

Costliest Fire on Record, Period.

It’s an unprecedented test of the California FAIR plan, the state-sponsored insurer of last resort. Pacific Palisades is the high-cost neighborhood at the center of the Palisades Fire. The FAIR plan has seen its exposure there skyrocket to $5.89 billion. Its policies in one ZIP code central to Pacific Palisades grew 85% between 2023 and 2024.

Read the Article: Los Angeles Fires Become Existential Test for California’s Stopgap Insurer

Pricing Plateau?

Global insurance premiums fell 0.9% last year as the market became more competitive after years of rate rises.  Insurers have consistently raised rates in recent years in response to losses from wars and natural catastrophes, and due to inflationary pressures.  This has made them profitable, which has encouraged additional players into the market, pushing down prices.

Read the Article: Global insurance rates fall 0.9% in 2024, first drop since 2017, report says

Reuters