Everywhere around the country citizens are struggling with weather related catastrophes and here in Nebraska, Iowa and my home state of Minnesota, we are too.
Every day I'm asked why rates are going up SO MUCH and it appears Mother Nature is at the top of the list. We've seen multiple rounds of significant hail across Western Nebraska and Eastern Iowa. We've seen tornadoes with record setting measured wind speeds. We've set heat and rainfall records and unfortunately, there are no medals or celebrations for those.
Here's a snippet from insurancebusinessmag.com regarding Allstate's recent loss reporting from April and May of 2024.
June 21st, 2024
The Allstate Corporation has published its catastrophe losses estimate for May 2024, reporting a near-tripling compared to April.
Allstate’s estimated catastrophe losses for the month of May amounted to $1.40 billion (after tax, $1.10 billion). In April, the corresponding sums were $494 million and $390 million, respectively.
In the first quarter, pre-tax catastrophe losses for Allstate were estimated at $731 million.
This industry seems so much more erratic than it's ever been. When I see reports like this it seems like it's a tractor-trailer heading down the mountain with little brakes left. How it will keep up and stay alive during this period has to rely on continuing tightening of appetite (risks carriers are willing to take) and regular rate adjustments (increases). If you are reading this, I'm in the same boat as you. - Check out this link for the rest of the article.
Questions? Just ask - you can reach out to me at chris@myagentchrisbrown.com
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