APCIA Encourages Solutions to Address Increasing Insurance Costs Impacting Consumers

CHICAGO, Illinois, Sept. 8 -- The American Property Casualty Insurance Association issued the following statement on Sept. 7, 2023:

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The American Property Casualty Insurance Association (APCIA) released the following statement in support of today's Senate Committee on Banking, Housing and Urban Affairs hearing entitled, "Perspectives on Challenges in the Property Insurance Market and the Impact on Consumers." The following statement may be attributed to Nat Wienecke, APCIA's senior vice president of federal government relations.

"APCIA appreciates the Senate Committee on Banking, Housing and Urban Affairs for holding this hearing on an important issue impacting consumers. Property casualty insurers have been long-time leaders in addressing the impacts of climate change by advocating for stronger mitigation, resilience efforts, and building codes. With natural disaster losses rising and millions of people increasingly at-risk, the cost of insurance is going up in many areas of the country and some insurers are having to rebalance their risk and reduce their exposure as a result of continuing natural disaster losses. Reducing our risk must continue to be a shared priority among us all, and we must work together to adapt and increase our resilience in the face of climate-fueled disasters."

Average annual weather-related catastrophe losses increased from $126 billion in economic losses in 2022, while similar U.S. losses exceeded $100 billion in each of the last three years - the costliest three-year period on record, according to the Global Federation of Insurance Associations.

"However, it's not just the weather. Societal pressures, including record high economic inflation, unchecked legal system abuse, the global cost of capital, and worsening regulatory restrictions on risk management also are challenges impacting the insurance market.

"Insurance is the economic safety net that rebuilds homes, neighborhoods, and communities. It is vital that this safety net remains available and functioning. Any strain on insurance affordability and availability is a serious concern - and that is why we are advocating for solutions to address increasing insurance costs facing families, individuals, and business owners."

APCIA's and the Reinsurance Association of America's joint statement for the record is available here (https://apci.org/attachment/static/8705).

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The American Property Casualty Insurance Association (APCIA) is the primary national trade association for home, auto, and business insurers. APCIA promotes and protects the viability of private competition for the benefit of consumers and insurers, with a legacy dating back 150 years. APCIA members represent all sizes, structures, and regions--protecting families, communities, and businesses in the U.S. and across the globe.

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Original text here: https://www.apci.org/media/news-releases/release/77380/