State-sponsored FAIR Plans' policy counts nearly double since 2018 due to weather-related losses, inflation, and reinsurance costs in disaster-prone states.
AM Best reports that state-sponsored residual property markets, particularly FAIR Plans, have nearly doubled in policy counts since 2018, significantly after 2020. This rise is attributed to weather-related losses, inflation, and reinsurance costs, notably in disaster-prone states like Georgia, Louisiana, and Florida. As private insurers withdraw from high-risk areas, policyholders are increasingly reliant on these state programs, with California also facing a flood insurance crisis due to escalating natural disaster risks.
October 21, 2024
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