google.com, pub-6007374308804254, DIRECT, f08c47fec0942fa0
More

    Catastrophe Claims in Q4 Double on Late Hurricane Activity


    A significant rise in claims from hurricanes rather than winter storms was to blame for a 36% increase in total fourth quarter 2024 claims.

    A new report from Verisk Analytics found catastrophe claims more than doubled year over year during the last three months of 2024, as hurricane claims made up nearly 9% of fourth-quarter volume – more than an 1,100% compared to the fourth quarter 2023.

    Flood and wind claims increased 221% and 195%, respectively, according to Verisk data.

    Source: Verisk Analytics Inc.

    Verisk said its initial look at Q4 shows a 7% decrease in average claims severity compared to the same period in 2023. However, the firm noted how the replacement cost value (RCV) in Q3 2024 increased 10% to $16,800 as complex claims reached completion. Based on this claims-maturation pattern, Verisk said it projects Q4 average RCV at about $18,600.

    Verisk’s observations during Q4 include possible challenges in skilled-labor availability since labor costs accelerated fasted than material costs during the period. Looking at the last 12 months, billable labor rates went up about 5.3% in the U.S.

    Residential reconstruction costs have gone up 4.5% from January 2024 to January 2025 while commercial reconstruction costs climbed 5.5% year over year, Verisk noted in the quarterly property report.

    “This shift in risk patterns demands new approaches to risk assessment and resource planning, particularly in the Southeast where costs increased at six times the national rate following hurricane activity,” Verisk said, adding that Hurricane Milton has generated about 187,000 claims with RCV of about $2.7 billion. Average RCV per claim is $19,100, with about 85 of claims still outstanding as of the report.

    Increased claims were seen in Florida, Georgia, and South Carolina from the hurricane activity. In addition, “unexpected surges” in claims were seen in the Great Plains and Pacific Northwest mostly from water, hail, and wind perils, Verisk added.

    Topics
    Catastrophe
    Natural Disasters
    Claims
    Hurricane

    Was this article valuable?


    Here are more articles you may enjoy.

    Interested in Catastrophe?

    Get automatic alerts for this topic.



    Source link

    Recent Articles

    Trump administration is gutting the National Center for Education Statistics: Here are five things we only know about schools thanks to the NCES

    Posted March 13, 2025 at 1:16 pm by Dave Kamper Trump administration is gutting the National Center for Education Statistics: Here are five things we only...

    $1.3 Million Homes Near Zurich

    Dietikon | $1.39 million (1.225 million Swiss francs)A terraced apartment with forest views in DietikonThis two-bedroom, two-bathroom apartment occupies the top floor of...

    Fraternity Members Charged in Death of Southern University Student

    Two more arrests have been made in connection with the death of a 20-year-old Southern...

    If You’re Buying a Home Today, Expect to Keep It for a Long Time

    It seems pretty clear that the housing market has cooled, and is now more of a buyer’s market than a seller’s market.While this...

    8 Ways To Get a Free Old Navy Gift Card

    Want to save money on clothes and get a free Old Navy gift card? Free gift cards can be a great way to...

    Related Stories

    Leave A Reply

    Please enter your comment!
    Please enter your name here

    Stay on op - Ge the daily news in your inbox

    google.com, pub-6007374308804254, DIRECT, f08c47fec0942fa0
    google.com, pub-6007374308804254, DIRECT, f08c47fec0942fa0