For seven consecutive years, the reinsurance market has responded to ten or more billion dollar weather and climate disaster events in the U.S. As a result, premiums have been increasing dramatically and 2022 will be no exception.
The Property Casualty insurance market continues to tighten to levels not seen in decades. 2020 saw the most weather and climate billion dollar events since recordkeeping began with 22 events. Unfortunately, 2021 recorded the second most events at 20. 2021 was the 3rd costliest year exceeding $145 billion. One of the billion dollar events that we are all very familiar with was the 2021 February winter storm which exceeded $24 billion. Texas portion of that event was $10.3 billion.
For seven consecutive years, the reinsurance market has responded to ten or more billion dollar weather and climate disaster events in the U.S. As a result, premiums have been increasing dramatically and 2022 will be no exception.
How much will my school district premium increase this year? That will depend on a variety of factors unique to your district. In a recent survey of 30 school districts renewing in the first quarter of 2022, rate increases ranged from 5% - 50% with increases in wind & hail deductibles for some depending on their individual loss history. Your risk management insurance representative is in the best position to estimate this year’s premiums. Due to multiple years of significant losses, the marketplace is volatile and rates are constantly changing. Contact your representative or broker for budget estimates.
You may be asked to provide additional information this year. Underwriters are focusing on property valuations and whether reported values reflect current costs. Building costs have risen sharply in recent years. The same values that have been listed on property schedules for several years may no longer be accurate or accepted. Because of the high frequency and severity of Texas hail events, underwriters continue to focus on roof age and material.
Cyber Coverage Update
Educational and municipalities are the most targeted organizations by cyber criminals. Texas leads all other states in school/college ransomware attacks. With a significant increase in cybercrime, coverage is getting more and more difficult to obtain. For those who are able to obtain cyber coverage, expect a sharp increase in premium and tighter underwriting requirements such as multi-factor authentication, employee training, and network security.
