ATLANTA – An inaugural study of home insurance trends released today by
LexisNexis® Risk Solutions reveals good news for home insurance carriers: homeowner claims continue to decrease and loss costs are flat or on the decline. The 2016 LexisNexis Home Trends Report is the first in a series of research identifying key insurance industry trends focused on perils – wind, hail, fire, water (weather and non-weather related), theft, liability and other perils. The report aims to provide insights that insurance carriers can utilize to make better business decisions, reduce risk and price policies as precisely as possible.
According to the report, while the U.S. has already seen one major hurricane in 2016, overall loss across all perils declined by 30 percent from 2010 to 2015, driven largely by fewer claims and catastrophic events. The study also found that claims spiked on average 46 percent in the spring time period, though the severity of claims tends to hold steady throughout the year. When viewed through a geographic lens, loss costs from peril claims are highest in the Midwest due to the higher loss cost states making up “Tornado Alley,” which based on peril claims should be more aptly be named “Hail Alley” due to dollars lost per house.
“Insurance carriers want up-to-date trended peril data,” said George Hosfield, Senior Director, Home Insurance, LexisNexis Risk Solutions. “Our new Home Trends Report provides carriers with these valuable insights so they can better assess properties and price accordingly, enabling them to better test and validate prior initiatives, identify new pricing opportunities and better plan for the future.”
Key findings from the LexisNexis Home Trend report by peril include:
For more information, download the 2016 LexisNexis Home Trends Report.
About LexisNexis Risk Solutions
LexisNexis Risk Solutions harnesses the power of data and advanced analytics to provide insights that help businesses and governmental entities reduce risk and improve decisions to benefit people around the globe. We provide data and technology solutions for a wide range of industries including insurance, financial services, healthcare and government. Headquartered in metro Atlanta, Georgia, we have offices throughout the world and are part of RELX Group (LSE: REL/NYSE: RELX), a global provider of information and analytics for professional and business customers across industries. For more information, please visit www.risk.lexisnexis.com and www.relx.com.