The third quarter is always pivotal in the insurance market because it is the peak of the Atlantic hurricane season. The number and severity of named storms, and if and where they make landfall, will impact property premiums for the remainder of the year and into the following year. The third quarter of 2022 was quiet until Hurricane Ian made landfall in Florida on September 28th. The hurricane was devastating both in terms of the cost to human life and property. Risk modeling company RMS is estimating the total insured losses to be in the $53 billion to $74 billion range.

The decelerating rate trend we noticed in the property market in the first half of 2022 effectively ended with Ian. Property insurance buyers can expect rates to head up again even if their portfolios don’t include Florida properties. Inflation was an issue that property insurers were grappling with throughout 2022, and non-hurricane catastrophes have been increasing in both frequency and severity. Non-hurricane catastrophes are events like wildfires, hailstorms, tornadoes, and floods. Reinsurance capacity is expected to be constrained in 2023, and that will impact rates for all property insurance buyers.