Insurance companies have lost billions. Now they are asking property owners to chip in.
- Shirley Gordon
- Practice Leader, Personal & Family Office Risk Management
When it comes to catastrophes, the past two years have been dramatic, particularly in California. As a result, insurance companies are facing massive payouts for losses.
In 2018, insurance companies in California had a 200% loss ratio on their homeowner line of business. That means for every dollar in premium received, $2 were paid out in homeowner claims.
As 2019 progresses, property insurance rates continue to rise and insurance companies are imposing higher scrutiny when assessing property exposure to risks. Many property owners have seen their insuranc e rates rise from 10-20 percent and, in areas that are prone to severe fire risk, these increases jump to 40-50 percent.