Extreme Weather’s Seasonal Severity Impacts Rates, Regardless of Inflation, Price Gouging

Losses from the winter storm that swept through the southern United States earlier this year continue to loom large among the concerns of property and casualty insurers, even as the nation contends with wildfires and anticipates yet another above-average hurricane season.

‘On its own, Uri would not necessarily impact premium rates,’ says Dr. Michel Léonard, CBE, Triple-I vice president and senior economist.

‘What matters is the overall severity of extreme weather events during a calendar year or a specific peril season.’

Dr. Léonard reports that current expectations among weather experts of higher-than-average hurricane and wildfire seasons – in addition to Uri – will likely contribute to increases in property insurance rates in 2021, ‘before and regardless of inflation.’