Severe weather and inflation are disrupting the business insurance market in the U.S., especially in areas prone to natural disasters like wildfires, hurricanes, and floods. Insurance companies are facing challenges in providing coverage for properties in high-risk areas, leading to increased premiums and more stringent policy conditions. This has resulted in businesses and institutions, such as Kilroy Realty and colleges in southeast Louisiana, facing higher insurance costs and difficulties in obtaining sufficient coverage. The situation is exacerbated by rising losses from natural disasters, which totaled about $165 billion in 2022, and ongoing inflation affecting rebuilding costs. Despite the tough market conditions, there are signs of stabilization, with the reinsurance market heating up less quickly and businesses exploring alternative coverage options like parametric insurance. Changes in regulatory approaches, such as allowing catastrophe modeling for premium setting, could also improve the situation for insurers and insured alike.

https://www.wsj.com/articles/business-insurance-roiled-by-climate-inflation-205049df