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blcollier2.bsky.social

@blcollier2.bsky.social
8 followers 22 following 9 posts
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blcollier2.bsky.social @blcollier2.bsky.social · 03/02/2026
This cost is compounded by the market structure. National insurers ration coverage in high risk areas and are replaced by "Florida-only" domestic firms. These smaller firms rely heavily on reinsurance, spending $0.58 on it for every $1 in premiums they collect.
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blcollier2.bsky.social @blcollier2.bsky.social · 03/02/2026
A primary driver is “tail risk.” Hurricanes create massive losses—the models show a 1-in-100 year event can cause losses 15x higher than an average year. To survive these spikes, insurers buy expensive coverage from global reinsurers.
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blcollier2.bsky.social @blcollier2.bsky.social · 03/02/2026
This pass-through has grown more expensive. The "price" of $1 of risk rose from $3.53 (2008–2013) to $5.35 (2020–2024). The figure shows this change and that the growth is concentrated in hurricane premiums. Why is the load on top of the actual risk so large and growing?
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blcollier2.bsky.social @blcollier2.bsky.social · 03/02/2026
We first describe hurricane risk and how it has evolved. This map uses data from a leading modeler in 2023 to show how expected losses vary across the state for the most common type of home. The median ZIP has an expected loss of $319 per $100K of a home’s replacement cost value.
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blcollier2.bsky.social @blcollier2.bsky.social · 03/02/2026
Home insurance premiums are skyrocketing. How much is due to growing climate risk? 🌪️🏠 In our new paper, we use unique data from Florida—which has some of the highest premiums in the US—to open the "black box" of hurricane insurance pricing. 🧵 w\ @boomhower.bsky.social @tobiashuber.bsky.social
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