2020 was a record year for risks, marked by a global pandemic, social unrest, a tense US election season, the most active Atlantic hurricane season ever, and a further escalation of devastating wildfires. In fact, while COVID-19 and the presidential election season dominated the news, the US also had another record-breaking year for natural disasters with 22 separate billion-dollar weather and climate events.
The increase in frequency and severity of natural catastrophes (CAT) have lead carriers to rethink capital deployment and pull back from geographies that are expected to provide returns below their cost of capital. This translates into pronounced rate increases and less coverage availability for families trying to secure insurance for properties in high-risk areas.
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