Climate inflation

Although weather-related claims fell slightly last year, home insurance inflation accelerated this year. According to insurance group AON, in the US, during 2022 natural catastrophe-related insured property losses fell 2.7% year on year to USD 99.9 billion. However according to a study by Policygenius, US home insurance premiums rose 21% year on year in 2023 versus the 12% rate increase recorded in 2022. In Florida, a state subject to flooding and damage from hurricanes, home insurance premiums rose the most at 35% year on year. In Idaho, a state prone to damage from wildfires, rates rose 31% year on year. Although the rising level of home replacement costs contributes to the rising premiums, Policygenius notes insurance prices are rising even faster.  

Source: Policygenius, October 2023