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  • Writer's pictureACO Insurance

Industry Paper Warns of the Hardest Property Market In a Generation

Insurance buyers face the hardest property insurance market in a generation, with historic inflation and skyrocketing natural disaster losses causing “significant pressure,” according to a new report from the American Property Casualty Insurance Association (APCIA).

According to reinsurance broker Guy Carpenter, these factors drove the cost of property catastrophe reinsurance up by 30.1% at the start of the year after a 14.8% increase in 2022.

“The U.S. property casualty insurance industry is facing significant pressure from rising economic inflation, legal system abuse, supply chain

constraints, natural catastrophies driving up losses, and historic cost increases for reinsurance and other forms of capital,” said Karen Collins, APCIA vice president, property and environmental, in a statement. “The combined effects are resulting in the hardest market cycle in a generation. Commercial and personal property lines customers, particularly those in high-risk regions, may feel the effects of recent, elevated cost trends.”

In a paper titled “Hard Market Cycle Arrives: Inflation, Natural Disasters, and More Straining Property Insurance Markets,” APCIA and Dr. Robert Hartwig, Ph.D., CPCU, of the University of South Carolina, outlined the challenges for the market and urged loss mitigation for homes and properties.

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News Brief - Industry Paper Warns of the Hardest Property Market In a Generation
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