Insurance-to-Value in the limelight

Homes are undervalued like never before

Insurance-to-Value is at an inflection point in homeowners Insurance. P&C leaders point to an “industry revenue problem” as the primary cause of unsustainable loss ratios. Carriers are simply not getting adequate premium to keep up with inflation-plagued loss costs.

In this new whitepaper, we explore the pervasive underinsurance problem in homeowners, driven by historic reconstruction inflation and remodelling activity since the pandemic. We share data on these influences and discuss the extent of the homeowners ITV problem on different home values and demographics.

Key themes of the White Paper:

  • Residential reconstruction costs have surged 25%+ in past 3 years
  • Renewal factors have not kept up, contributing to underwriting losses
  • Carriers are strategically prioritizing ITV to address profitability

Carriers are pulling a few levers to get rate commensurate with the risk, but none are more appropriate in today’s environment than insurance to value. And importantly, no approach can be deployed more swiftly.

Written by:

Craig Locante
Vice President
Head of EXL Risk Control
Head of Castle High Value™

*Castle High Value™