LexisNexis Risk Solutions has released its ninth annual U.S. Home Trends Report which reveals that all-peril loss costs and all-peril frequency in the home insurance industry have been on the rise for the past seven years. The report combines data for hail, wind, water, fire and lightning weather perils, as well as non-weather related claims such as water leaks, thefts or liability. Catastrophe claims accounted for 46% of claims across all perils combined in 2023, the highest in seven years. The data showed that hail loss costs increased by 57.9% from 2022 to 2023, with frequency up 53.6% and severity up 2.8% year-over-year from 2022. The states with the highest impact of hail-related perils include Colorado, Nebraska and Wyoming. Other weather-related perils such as fire and lightning saw a decline in loss costs (-11.1%) and frequency (-8.6%), while weather-related water perils declined by 51.4%. Non-weather-related water perils decreased by 11.2%. Theft loss cost and frequency decreased by 14.2% and 15.8%, respectively, in 2023, while severity rose by 1.9%, partially attributed to the rising cost of consumer goods such as high-end kitchenware. Liability saw a marginal increase in severity (0.2%) in 2023. The report emphasises the need for carriers to consider broader historical data when evaluating risk and adjusting pricing strategies to help support their long-term profitability.
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