Sullivan & Cromwell LLP
01/31/2025 | Press release | Distributed by Public on 01/31/2025 13:52
FIO Report on U.S. Homeowners’ Insurance Market
January 31, 2025
Report Acknowledges Adverse Consequences of Climate-Related Events on Cost and Availability of Coverage. Next Steps Uncertain as EO Providing Framework for the Report Was Repealed by New Administration.
On January 16, 2025, FIO published a report analyzing the private U.S. homeowners' insurance market, which is based on underwriting data provided by more than 330 U.S. insurers to state insurance regulators. The report, unsurprisingly, finds that homeowners' insurance costs have risen faster than the rate of inflation and that premiums, non-renewal rates and insurer costs are higher in communities affected by substantial weather events. While the report concludes that underwriting data should continue to be collected from insurers in the future, the January 20, 2025 repeal of the Executive Order on Climate-Related Financial Risk casts doubt on whether any steps will be taken in furtherance of the report or otherwise in addressing insurance coverage gaps in risk-prone areas at the U.S. federal level.