Measuring and Assessing (Homeowner) Insurance Affordability

Today it is difficult to not see news coverage highlighting growing U.S. insurance costs and affordability challenges. Here are some fairly recent examples – “Even if you can afford to  buy a home these days, Americans must ask themselves if they can afford to insure it.”; “Majority of Americans say car insurance is becoming unaffordable”; “Why is Health Insurance so Expensive?” But importantly what is driving these insurance costs increases, given cost increases how does one measure and determine whether insurance is affordable versus unaffordable, and facing affordability challenges what options do consumers have at their disposal and are they deploying them? During this event we will address these questions with panelists drawing upon their own existing data, studies, and interactions with consumers to provide objective evidence to the discussion and highlight existing knowledge gaps in the measurement and assessment of insurance affordability.

The event will begin with a presentation of trends in the cost of insurance, focusing largely on homeowner property insurance. The presentation will then present some metrics of insurance affordability and how those have changed over time. Following the presentation will be a panel discussion. The panel will discuss the causes and consequences of cost trends and the implications for insurance affordability, including the best ways to measure affordability. The panel will also discuss what options consumers have when facing affordability of insurance issues and how often and/or well they are aware of and employ these options.

Learning Objectives:

• Identify trends in the cost of insurance, focusing largely on homeowner property insurance
• Assess the causes and consequences of cost trends and the implications for insurance affordability, including the best ways to measure affordability
• Highlight options consumers have when facing affordability of insurance issues and how often and/or well they are aware of and employ these options

Panel Speakers:

Amy Bach, Executive Director, United Policyholders & NAIC Consumer Representative

Vickie Kilgore, Assistant Vice President, Insurance Research Council (IRC)

Dr. Lars Powell, Director, Center for Risk and Insurance Research, University of Alabama

Moderated by:

Jeff Czajkowski, Director, Center for Insurance Policy and Research

Recording

Agenda

Materials

CIPR's special session is open to all registered NAIC 2024 Summer National Meeting participants.