Property Insurers’ Exodus Presents Challenges and Opportunities

The exodus of some insurers from states badly affected by catastrophic climate-related events represents an opportunity for the carriers that remain, but comes with a need to understand the potential effect it has on customer perceptions, according to the J.D. Power 2023 U.S. Home Insurance Study.

Homeowners and renters across the country have been notified by their insurance providers that they are being dropped, as catastrophic events, rising costs and regulatory pressures have strained property and casualty insurance business models.

There are a few factors driving carriers out of some states, according to Breanne Armstrong, director of insurance intelligence at J.D. Power. The most discussed reason, she said, relates directly to the increase in frequency and intensity of natural disasters within some states like California, Louisiana, and Florida.