Jennifer Castenson’s Post

Kemper CEO Joseph Lacher didn't exactly pull any punches with his assessment of the current climate in the insurance business during his company's quarterly conference call this week. He told analysts that the industry is in the midst of “the most disrupted personal lines environment” he's ever seen and that we are looking at a "hard market that will likely persist for an extended period of time.” Kemper's way of dealing with the widespread disruption is to exit the preferred home and auto insurance market with the expectation of reversing its second-quarter loss. The wind-down of the business will enable the redeployment of more $300 million in capital to Kemper’s core segments. “While our financial results through the first half of 2023 fell short of our targets, we believe the actions we've taken and continue to take to position us to succeed in this difficult environment,” Lacher explained on the call. “Traditional historical patterns are used by the industry to predict future behavior are producing patterns outside their historical norms.” Read the full story from Insurance Business America: https://lnkd.in/gC5YAzF5 #insurance #risk #earnings #wallstreet #autoinsurance #homeinsurance #reinsurance #economy

ICYMI: 4 Takeaways From the The New York Times Homeowners #Insurance Investigation - #climatechange is upending markets, insurers are pulling out of many states, and governments are racing to manage the consequences and tweak rules and regulations - but affordable, accessible coverage for homeowners is far from a sure thing. #climaterisk #riskmanagment https://lnkd.in/ep-wJ4Et

U.S. homeowners’ insurance carriers/providers face continuing challenges in projecting loss costs and insuring to value amid higher inflation and economic uncertainty. Providers will report an underwriting loss for the sixth time in seven years in 2023, as natural catastrophic loss claims exceeded historical norms. Learn more: https://ow.ly/m4Xk50QGIkt #FitchRatings #Insurance #HomeownersInsurance

When you have accumulated a lot of wealth, you want to do what you can in order to protect that wealth. Families with higher levels of wealth have unique needs and more complex risk profiles. In this blog, we cover what insurance coverages are worth looking at. #LaineWealth #Risk #Insurance #HighNetWorth

I talked to Green Central Banking about how the insurance industry's profit motive means it hides data that would help us better understand today's home insurance crisis AND deprioritizes the original purpose of home insurance: to keep homes habitable. https://lnkd.in/gUyS_KMT

Travelers to tighten HO underwriting criteria According to a source familiar with the matter, policyholders will see four changes coming – some nationwide and others specific to certain states. http://spr.ly/6040Pw7XC #reinsurance #insurance

An updated guideline from Fannie Mae, if it stands, could throw a wrench into the property/casualty insurance industry’s move toward actual cash value for more homeowners and condo coverage. https://lnkd.in/eaZvs_KK #insurance #FannieMae #propertycasualty #homeinsurance

⛈ What to Do When Borrowers Fail to Comply with Insurance Requirements - Force-placed insurance is a common solution, but there’s a better approach. Read more ➡️ https://rpb.li/9HX #borrowers #compliance #insurance #risk

The U.S. homeowners insurance segment has been hit with three consecutive years of net underwriting losses as a result of above-average numbers of natural catastrophes, inflationary pressures and elevated reinsurance costs. These market headwinds have led AM Best to revise its outlook on the segment to negative from stable. Segment carriers are being challenged “by more frequent secondary weather perils and higher retentions and co-participation, given reinsurance pricing trends,” according to the report titled “Market Segment Outlook: US Homeowners.”