2024 began with optimism around lower property #insurance rates, but the impact of severe weather events—from a Texas #derecho in May to Hurricane #Beryl in July, and now a Midwest derecho—has shifted the landscape. These events are a reminder of how quickly conditions can change and how important it is to stay informed and prepared in the face of evolving risks.
Back in May, I was sitting with a group of insurance professionals discussing the positive trend of lower property insurance rate increases and, in some cases, actual decreases anticipated for 2024. That same day in Austin, I witnessed the leading edge of my first Texas derecho as it swept through mid-afternoon, leaving a path of damage across the eastern part of the state. Fast forward to July 8th, when Hurricane Beryl struck the Houston-Galveston area. Though only a Category 1 storm, it hit at just the right angle to cause significant damage. In the time between these events, we've seen multiple large hail storms, tornadoes, wildfires, and other natural disasters across the country. Just this past Monday, a derecho hit the Upper Midwest, with Chicago experiencing 11 confirmed tornadoes and severe flooding in Illinois and Indiana. The hurricane-force winds caused extensive damage. In the property insurance world, premium rates are largely driven by losses. These losses are influenced by construction costs, material expenses, and historical as well as projected damage. Unfortunately, since mid-May, weather-related losses have been trending in the wrong direction once again. #Insurance #RiskManagement #HurricaneSeason