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Catastrophes, Severe Convective Storm, Tornado, Wind

Illinois Storms Highlight Mounting Severe Weather Losses

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By Lewis Nibbelin, Research Writer, Triple-I

Thunderstorms threatening tornadoes, large hail, and flooding in Illinois this week are just the latest in an outbreak of severe weather within the state this year. As of April 17, the National Weather Service (NWS) has logged more than 300 storm reports for the Prairie State, which currently ranks first for both tornadoes and hail nationwide.

Trailing just behind Alabama, Georgia, and Ohio for severe wind, Illinois leads in severe weather overall with 130 hail events and 61 tornadoes. For comparison, the 25-year average for tornadoes in the state during an entire year is 61 tornadoes, based on final NWS data from 2000 to 2024. An estimated 147 tornadoes impacted the state in 2025 alone, with Illinois ranked second for tornadic activity after Texas.

Much of the damage thus far this year occurred during a series of March outbreaks that tracked through the Midwest, each expected to generate $1 billion or more in insured losses, according to initial estimates from Gallagher Re.

Marked by violent tornadoes, massive hail, and strong straight-line winds, the March 10-12 and March 15-16 storms collectively claimed multiple lives and damaged hundreds of homes and buildings across Illinois and dozens of other states, including major metro areas like Chicago. As such, Gallagher Re projects the direct economic costs of both events will be roughly 25 percent higher than eventual insured losses.

Among the communities hit hardest by the March 10-12 storms was Kankakee County, a suburb about 50 miles south of Chicago. Beyond a powerful EF3 tornado, the area also reported a potentially record-breaking hailstone for the state, observed as larger than the size of a grapefruit.

Surges in convective storm activity during spring and into June are typical, with March historically leading the season every year. Research suggests the severity of these events may rise, however, as hailstorms producing large stones become more common and tornadoes increasingly concentrate in outbreaks of days with multiple twisters.

Climate patterns shifting tornadoes farther east may also be raising the frequency of the peril in states traditionally considered lower risk. Because the Midwestern and Southeastern U.S. are more densely populated than the Plains, the path of individual tornadoes is more likely to cross with urban areas, leaving more people vulnerable and adding to the overall toll of tornadic activity.

Nationally, the NWS has so far this year reported 365 tornadoes, which is approximately 28 above the 1991 to 2020 U.S. tornado average through the end of April. This number is expected to continue rising this month as more rounds of severe storms develop in Illinois and countrywide.

Learn More:

Convective Storm Losses: Historic 3-Year Streak

Claims Leaders Take Charge on Climate-Resilient Rebuilding

Industry, Universities Team Up to Study Convective Storms

Facts + Statistics: Tornadoes and Thunderstorms

Facts + Statistics: Hail

Disaster Preparedness, Disaster Resilience, Insurers and the Economy, Risk Management

Welcome Back, BRIC

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By Jeff Dunsavage, Head of Research Publications and Insights, Triple-I

The restoration of FEMA’s Building Resilient Infrastructure and Communities (BRIC) program after its sudden cancellation a year ago is good news for communities that will benefit from the program.

Congress established BRIC through the Disaster Recovery Reform Act of 2018 to ensure a stable funding source to support mitigation projects annually. Before its cancellation on April 4, 2025, the program had allocated more than $5 billion for investment in mitigation projects to alleviate human suffering and avoid economic losses from floods, wildfires, and other disasters.

At the time the program was cancelled, Chad Berginnis, executive director of the Association of State Floodplain Managers (ASFPM), was critical of the decision.

 “Although ASFPM has had some qualms about how FEMA’s BRIC program was implemented, it was still a cornerstone of our nation’s hazard mitigation strategy, and the agency has worked to make improvements each year,” Berginnis said.

A coalition of 23 states challenged the cancellation and secured a court order requiring FEMA to restore billions in funding to communities that rely on the hazard-mitigation program. In a March 6 ruling, a U.S. district judge Richard G. Stearns gave FEMA 21days to unfreeze the approximately $750 million in grants that have been in limbo since the cancellation, which it did on March 31.

Tighter scrutiny

The restored BRIC program is largely the same statutory program, but now it operates under tighter judicial and congressional scrutiny. FEMA also explicitly states that the restored program:

  • Prioritizes infrastructure and construction projects that deliver immediate, measurable risk reduction;
  • Limits capability‑ and capacity‑building activities to those directly tied to infrastructure; and
  • Excludes stand‑alone planning activities not connected to physical mitigation outcomes

“BRIC isn’t a perfect program, but it’s a necessary one,” said Daniel Kaniewski, CEO of Northstar Risk & Resilience, a former FEMA deputy administrator, and a Triple-I non-resident scholar. “It was formed to help drive investment in creating disaster-resilient communities – a very real need.”

Kaniewski drew comparisons with the National Flood Insurance Program (NFIP) “Risk Rating 2.0” reforms, which aligned NFIP premiums more closely with the risk characteristics of insured properties. Before the reforms, lower-risk property owners frequently subsidized the coverage of higher-risk homes. Risk Rating 2.0 made rates fairer and the program more fiscally sound. But further reforms to NFIP are necessary, just as BRIC may need to be updated based on lessons learned from the first few years of the program’s implementation. 

Kaniewski offered a final caution.

“BRIC alone – or any federal program on its own – isn’t going to close the nation’s disaster resilience gap,” he said. “It’s going to take community leaders, emergency managers, businesses, nonprofits – and, of course, the insurance industry – pulling in the same direction. The burden can’t exclusively fall on the property owners and federal taxpayers.”

Learn More:

BRIC Funding Loss Underscores Need for Collective Action on Climate Resilience

Convective Storm Losses: Historic 3-Year Streak

Flash Floods Set Records in 2025, Inland Risk Surges

Claims Leaders Take Charge on Climate-Resilient Rebuilding

Climate Nonprofits Take Responsibility for Terminated U.S. Databases

Resilience Investment Payoffs Outpace Future Costs More Than 30 Times

Health & Safety, Homeowners Insurance

Dog-Related Injury Claims on the Rise in 2025

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By Lewis Nibbelin, Research Writer, Triple-I

Insurers paid $1.86 billion in dog-related injury claims in 2025, up by 18.6 percent from 2024, according to research by Triple-I and State Farm.

The total number of dog-bite and related claims was 28,450, a more than 25 percent increase from 2024 and a 57 rise over the past decade. Though the average cost per claim fell to $65,450 – a 5.5 percent decrease from $69,272 in 2024 – costs also remained at a 97 percent rise over the past decade.

California and Florida continued to see the most claims in 2025 from 2024, with more than 2,000 claims in each state. New York filed the highest average cost per claim, at $92,154, followed by Connecticut and California.

According to the American Veterinary Medical Association (AVMA), 45 percent of homes include at least one dog, for a total of approximately 90 million pet dogs in the United States. While most will coexist peacefully with us, dog bites remain a serious public health concern, with more than 4.5 million bites reported each year in the United States.

During National Dog Bite Prevention Week (April 12–18), a coalition of veterinarians, animal behavior experts, and insurance representatives urge the public to understand the risks dog bites pose to people and other pets and the steps required to prevent injuries.

“We’ve seen a 25 percent increase in dog bites in 2025 and yet, most dog bites are preventable. Children are especially vulnerable,” said Janet Ruiz, communications director at Triple-I. “Prevention starts with understanding how dogs communicate and teaching children how to interact with them safely.”

Tips to prevent dog bites

All dogs – even well-trained, gentle dogs – can bite when provoked, especially when eating, sleeping, or caring for puppies. To keep people and pets safe, the National Dog Bite Prevention Week Coalition provides the following tips:

  • Adopt wisely. Not every dog is a perfect match for every family. Choose a dog suited for your lifestyle and household, including other pets.
  • Socialize your dog. Try to expose your dogs to new situations gradually and for short periods of time. Arrange for low-stress interactions and give plenty of praise and rewards for good behavior.
  • Educate yourself in positive training techniques and on the unique needs and behaviors of your dog. Learn the signs that your dog is stressed or uncomfortable and be prepared to advocate for them in all situations.
  • Always supervise children around dogs, even family pets. More than half of all dog-related injuries are to children.
  • Always leash your dog on walks and make sure fences and gates are secure if they spend time in a yard.
  • Keep your pet healthy. Not all illnesses and injuries are obvious, and dogs are more likely to bite if they are sick or in pain. If you haven’t been to the veterinarian in a while, schedule an appointment for a checkup to discuss your dog’s physical and behavioral health.

Pet owners should review their policies with an insurance professional to ensure they have adequate coverage for every pet in the household. Standard homeowners’ and renters’ insurance typically cover dog-bite liability legal expenses up to the liability limits of the policy (usually $100,000 to $300,000), with dog owners responsible for any damages above that amount.

Pet insurance policies can also offer tailored protection for pets from accidents and/or illnesses. While insurers typically do not provide coverage for pre-existing conditions, separate plans may be available for routine preventative care such as vaccines and annual exams.

Learn More:

Spotlight on: Dog Bite Liability

Facts + Statistics: Pet Ownership and Insurance

Liability and Safety Tips for Dog Owners

Tips to Prevent Dog Bites

Catastrophes, Disaster Resilience, Roof Condition, Severe Convective Storm, Tornado, Wind

Convective Storm Losses: Historic 3-Year Streak

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By Lewis Nibbelin, Research Writer, Triple-I

Despite a relatively mild Atlantic hurricane season, the United States reported another costly year of natural catastrophe events in 2025, driven largely by the $51 billion in annual insured losses from severe convective storms, according to Gallagher Re estimates.

Trailing behind only 2023 and 2024 in such losses, the year ranks as the third costliest on record for the peril, producing more than $68 billion in total economic damages. A new Triple-I Issues Brief examines the demographic shifts and evolving weather and climate patterns behind the devastation, particularly as convective storm activity increasingly impacts dense urban areas.

Tornado activity surges

Preliminary data from the National Oceanic and Atmospheric Administration (NOAA) indicates at least 1,559 tornadoes were reported in 2025, roughly 127 percent of the annual 1,225 historical average. Though advancements in doppler radar and other technologies have improved observations, some climate experts suggest activity has become increasingly concentrated in outbreaks of days with multiple tornadoes.

A record 300 twisters spawned in March alone, with more than 100 confirmed across 15 states during mid-month. Generating $8.4 billion in insured losses, the early season outbreak is the fourth costliest of its kind on record and led to two EF4 tornadoes in Arkansas, the first time in decades that such a convergence had been reported.

Hail takes center stage

Hail accounts for as much as 80 percent of severe convective storm claims in any given year, causing an estimated $10 billion in annual U.S. property damage for more than a decade. Roofs bear the brunt of this damage, facilitating an estimated 70 to 90 percent of total insured residential catastrophic losses.

To better understand hail formation and impact, Victor Gensini – Northern Illinois University meteorology professor and Triple-I non-resident scholar – recently co-led the largest hail study ever conducted, known as ICECHIP. Funded with an $11 million grant from the U.S. National Science Foundation, the field study sent more than 100 scientists across the Great Plains to analyze hailstorms during summer 2025. The Insurance Institute for Business and Home Safety also participated, as part of its ongoing efforts to develop severe weather-resilient construction standards.

Partners in resilience

Every $1 spent on hazard mitigation can save up to $33 in future disaster costs, according to a report from the U.S. Chamber of Commerce and Allstate. Modern building codes are essential to achieving these outcomes, as is leveraging tools like aerial imagery and artificial intelligence to help predict and prevent losses before they occur.

Numerous private sector nonprofits have also stepped up to fill in research and mitigation gaps left by various federal funding and staffing cuts last year. Climate Central, for instance, has released its first billion-dollar weather and climate disaster report since assuming responsibility for that dataset last year from NOAA, reporting 21 such events from severe convective storms alone, more than any prior year on record.

Learn More:

Claims Leaders Take Charge on Climate-Resilient Rebuilding

Climate Nonprofits Take Responsibility for Terminated U.S. Databases

Industry, Universities Team Up to Study Convective Storms

Storm-Resistant Roof Efforts Gain Ground

Resilience Investment Payoffs Outpace Future Costs More Than 30 Times

Why Roof Resilience Matters More Than Ever

Weather Balloons’ Role in Readiness, Resilience

Auto Insurance, Insurers and the Economy, Market Conditions

Oil Prices Might Reduce
Accidents, But Severity Would Offset Impact

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By Jeff Dunsavage, Head of Research Publications and Insights, Triple-I

If oil prices continue to rise due to hostilities in the Middle East, fewer drivers on the road could lead to fewer accidents and insurance claims. However, increased severity – driven by rising replacement costs – would likely overwhelm any decrease in frequency over time, according to Patrick Schmid, Triple-I’s chief insurance officer.

“Even before the war, repair costs were rising more than twice as fast as general inflation,” Schmid said.  “From the supply-chain disruptions of COVID through the past year’s economic policy uncertainty with tariffs, as well as legal system abuse, upward pressure on claim costs has been unrelenting.”

Indeed, more costly gas might not affect driving as much as one might expect. According to the American Public Transportation Association, a 10 percent rise only reduces driving by 0.2 to 0.3 percent. Even if high prices continue, the average drop is just 1.1 to 1.5 percent.

“People still need to get to work and run their lives,” Schmid said. “Gas price alone isn’t enough to dramatically change that.”

Research shows wealthier drivers cut back on driving more than lower-income drivers – who tend to have fewer choices as to how they get to and from work – when gas gets expensive. Policyholders who can’t easily reduce their driving are often the ones with tighter budgets and older, less safe vehicles.

Oil prices don’t just affect how much people drive — they also flow through the entire repair supply chain. The cost of auto maintenance and repair climbed roughly 10 percent from 2023 to 2024 alone, a trend pushed higher by inflation and a shortage of skilled technicians.

What does this mean for policyholders?

The factors that influence premiums vary widely by state, and accident frequency is just one of them.  Louisiana – one of the least-affordable states – has recently seen declines in premiums as a result of both reduced frequency and severity.  

A major contributor to high premiums is the prevalence of fraud and legal system abuse in those states. States like Florida that have proactively sought to address these factors through legal system reforms, have begun to see rate declines. Since Florida’s reforms, nearly 20 new property insurers have entered the state and existing carriers have expanded their market share, driving renewed competition in the private market. This facilitated the lowest number of policies administered by Citizens Property Insurance Corp. – the state-run insurer of last resort – in over a decade.

“It’s encouraging to see other states beginning to follow Florida’s lead,” Schmid said. “It’s important for policymakers to follow successful examples.”

Learn More:

Lessons for Texas from Florida’s Legal System Reforms

Florida Premiums Drop Amid Post-Reform Stability

Uber Joins Effort to Drive Legal System Reform

Auto Premium Growth Slows as Policyholders Shop Around, Study Says

Even With Recent Rises, Auto Insurance Is More Affordable Than During Most of Century to Date

New York Among Least Affordable States for Auto Insurance

Louisiana Auto Insurance Rates Benefit from Declines in Frequency, Severity

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Uber Joins Effort to Drive Legal System Reform

Legal System Abuse, Artificial Intelligence Cloud 2026 Outlook

Triple-I Legal System Abuse Awareness Campaign Enters California, Illinois

Georgia Targets Legal System Abuse

Disaster Preparedness, Disaster Resilience, Flood Insurance, Floods, Homeowners Insurance, Hurricane

CSU Projects “Somewhat Below Normal” 2026 Hurricane Season

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By Lewis Nibbelin, Research Writer, Triple-I

Colorado State University (CSU) researchers predict a “somewhat below normal” Atlantic hurricane season in their initial 2026 projections, citing the likely development of a robust El Niño event as the primary reason for their forecast of six hurricanes this year.

Led by senior research scientist and Triple-I non-resident scholar Phil Klotzbach, the CSU TC-RAMS team predicts 13 named storms and six hurricanes, two of which will become major hurricanes, or those that reach Category 3 strength or higher. A typical Atlantic season sees 14 named storms, seven hurricanes, and three major hurricanes.

The team’s forecast stems from conditions favorable for a strong El Niño, characterized by above-average ocean temperatures in the central and eastern tropical Pacific. Typical El Niño events “tend to increase winds high up in the atmosphere,” Klotzbach explained, which increases levels of vertical wind shear, or changes in wind speed and direction.

Noting “too much shear tears hurricanes apart,” Klotzbach said that “especially when those events are moderate or strong, they cause very significant impacts in Atlantic hurricane activity.”

A potential record-setting super El Niño on the horizon would suggest impacts far beyond the Atlantic, including extreme heat around the globe. Bringing drought to some regions and flooding to others, the event would help suppress Atlantic hurricane activity while boosting hurricane as well as typhoon risks in the Pacific.

But while “the odds of landfall do go down when the forecast is for below normal activity,” Klotzbach emphasized “there have been significant landfalls in seasons that were somewhat below normal.”

For comparison, the 2025 Atlantic hurricane season produced 13 named storms and five hurricanes. Among those five, four became major, including three Category 5 storms – marking only the second year on record that more than two such storms occurred in the Atlantic Basin. Though none made landfall in the U.S., the Category 5 Hurricane Melissa tied with 1980’s Hurricane Allen for the strongest Atlantic Basin landfall by wind speed on record, causing widespread damage throughout the Caribbean.

While the season runs from June 1 through Nov. 30, now is the ideal time for families and businesses to review their policies with an insurance professional to ensure they have adequate coverage. Many may be unaware they need flood coverage, which is not part of a standard homeowners, condo, renters, or commercial property insurance policy. Flood policies are offered through FEMA’S National Flood Insurance Program and dozens of private insurers.

Homeowners can also upgrade their residences to voluntary standards for wind and heavy rain resilience, as modeled by the Insurance Institute for Business & Home Safety (IBHS). Retrofitting roofs to IBHS FORTIFIED standards, for instance, has demonstrated success in reducing hurricane damage, prompting numerous state governments to begin providing premium discounts to policyholders with completed retrofits.

Learn More:

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Storm-Resistant Roof Efforts Gain Ground

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Resilience Investment Payoffs Outpace Future Costs More Than 30 Times

Study Touts Payoffs from Alabama Wind Resilience Program

Affordability, Legal Environment

Legal System Abuse Awareness Campaign Spreads Across U.S.

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By Jeff Dunsavage, Head of Research Publications and Insights, Triple-I

Triple-I’s awareness-building campaign around legal system abuse and its impact on consumers and businesses – including driving up insurance premiums – continues to spread across the nation.

Over the past several weeks, brick-and-mortar highway billboards and digital displays have appeared in areas of Missouri, Oklahoma, and Wisconsin. This follows the campaign’s February expansion into California and Illinois. Kicked off in 2024 in the Capitol District of Atlanta, the campaign also includes a dedicated online consumer-education resource:  StopLegalSystemAbuse.org and targeted social media messaging.

By demonstrating the direct link between lawsuit abuse and increased insurance premiums, Triple-I aims to catalyze legislative action and economic relief.

 “We have already seen how meaningful tort reform in states like Florida, Georgia, and Louisiana can stabilize the insurance market and provide direct financial relief to consumers,” said Triple-I CEO Sean Kevelighan. “Triple-I remains committed to educating lawmakers and the public on the high cost of legal system abuse, addressing the critical issue of affordability for families, and driving legislative progress that restores balance to the national economy.”

The pain is real

Affordability – including insurance costs – is a nationwide issue, and consumers’ pain is real. Unfortunately, many legislative proposals aimed at easing that pain would have the opposite effect.  As Bloomberg warned in a January 2026 editorial, policymakers should resist politically popular but “simplistic solutions, such as capping premiums, subsidizing homebuyers, or punishing investors.”

Instead, it recommends taking steps to increase investment in catastrophe resilience and mitigate cost drivers like legal system abuse.

“In many states,” the editorial said, “underwriters must contend with laws that favor plaintiffs, outsized jury awards, and a proliferation of funds that specialize in financing lawsuits. Research suggests that such costs have been the single biggest driver of premium increases in recent years.”

Also feeding higher premiums are increased replacement costs related to inflation.

Model what’s working

As policymakers seek ways to address these influences, it’s important to learn from states that are succeeding. Florida has a long history of man-made problems caused by insurance fraud and litigation abuse that have contributed to upward pressure on insurance rates. More recently, the state’s legislative reforms to address fraud and tort reform have made the Sunshine State a national model for getting at the root causes of high premiums, instead of merely treating the symptoms.

Since reforms were enacted following a 2022 special session of the Florida Legislature, nearly 20 new property insurers have entered the state and existing carriers have expanded their market share, driving renewed private competition. That shift has facilitated a deep reduction in the number of policies administered by Citizens Property Insurance Corp. – the state-run insurer of last resort.

Other states would do well to pay attention to Florida’s blueprint and learn from these and other successes.

Learn More:

Lessons for Texas in Florida Legal Reforms

Florida Premiums Drop Amid Post-Reform Stability

Uber Joins Effort to Drive Legal System Reform

Legal System Abuse, Artificial Intelligence Cloud 2026 Outlook

Claims Leaders Take Charge on Climate-Resilient Rebuilding

Triple-I Legal System Abuse Awareness Campaign Enters California, Illinois

Take Care in Addressing Homeowners’ Premiums, Bloomberg Cautions Policymakers

New York Among Least Affordable States for Auto Insurance

Louisiana Auto Insurance Rates Benefit From Declines in Frequency, Severity

Inflation, Replacement Costs, Climate Losses Shape Homeowners’ Insurance Options

Auto Insurance, Highway Safety, Theft

U.S. Vehicle Thefts Hit Lowest Level in Decades

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By Lewis Nibbelin, Research Writer, Triple-I

Vehicle thefts dropped 23 percent nationwide in 2025, marking the second consecutive year of historic declines, according to the latest analysis from the National Insurance Crime Bureau (NICB).

At 659,880 thefts, last year’s drop built on the momentum of a 17 percent decline in 2024, previously the largest decrease in total thefts in four decades. Several jurisdictions experienced even greater year-over-year decreases, with vehicle theft down by 39 percent in Washington, 35 percent in Colorado, and 34 percent in Puerto Rico.

“Coordinated prevention efforts by law enforcement, auto manufacturers, insurance companies, and the National Insurance Crime Bureau are having a major impact on vehicle thefts nationwide,” said NICB president and CEO David J. Glawe, adding that such efforts “remain key to protecting families, businesses, and communities nationwide.”

Vehicle thefts surged in 2020 to about one vehicle stolen every 36 seconds, fueled in part by shutdowns during the COVID-19 pandemic. Levels remained elevated into 2023, which recorded more than one million thefts as social media trends highlighting vehicle security system vulnerabilities gained traction.

Many trends targeted Kia and Hyundai models, comprising six of the ten most stolen vehicles that year. In response, both manufacturers began implementing stronger prevention measures and software updates, reducing their share of total thefts from 21 percent in 2023 to 14 percent in 2025.

Despite overall progress, vehicle theft across the U.S. still occurs every 48 seconds, the NICB reported. Urban communities are at greater risk, with more than one-third of thefts concentrated in the top ten metro areas in 2025. Accordingly, California – home to three of the top ten areas – recorded the highest number of vehicle thefts in 2025, contributing more than 20 percent of the nation’s total.

Beyond the direct financial cost of losing these assets, theft of vehicles or car components add upward pressure on auto insurance rates, particularly within areas known to be high-risk. The cost to repair and replace stolen vehicles is also rising, compounding a market already impacted by mounting fraud and legal system abuse across the country.

While systemic improvements have helped improve theft rates, vehicle owners must take steps to help mitigate their own risk. Triple-I recommends the following precautions:

  • Keep doors locked and windows shut anytime a vehicle is left unattended.
  • Hide valuables in the trunk to prevent creating an additional target on the vehicle.
  • Park in secure, highly trafficked, and well-lit areas. In public parking areas, stay as close as possible to guard booths or store entrances. Keep personal garages locked.
  • Consider anti-theft devices such as audible alarms and steering wheel locks. Many new cars include tracking devices, which can help locate a stolen vehicle, but these are also available for purchase and installation in older cars. Check with an insurance professional to learn how anti-theft devices can qualify policyholders for premium discounts.
  • Exploit vehicle identification (VIN) numbers. A number of law enforcement agencies and insurance databases can use a VIN number to make it harder for car thieves to sell a stolen car or its parts.

Staying protected through adequate insurance coverage is also essential. Policyholders with auto policies that meet state-required minimums may lack coverage for vehicle theft or damage from theft, which is typically provided through optional comprehensive insurance.

Industry Financials, Market Conditions

Inland Marine Insurance: Competitive, Resilient

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By William Nibbelin, Head of Industry Data and Actuarial Research, Triple-I

The U.S. inland marine insurance industry is celebrating 20 consecutive years of underwriting profitability, with a net combined ratio of 84.2 in 2024. According to Triple-I’s latest Issues Brief, every U.S. state as well as the District of Columbia and Puerto Rico saw profitable results for this line in 2024, with the exception of New Mexico.

Combined ratio is the most common measure of insurer underwriting profitability. It is calculated by dividing the sum of the claim-related losses and expenses by premium. A ratio over 100 indicates the industry is paying out more than it is taking in.

Defining the Inland Marine Policy

Inland marine serves as a “catch-all” for all goods in transit over land. The market is split into two main categories:

  • Commercial (80 percent of the market): Covers “property on the move,” such as construction equipment, transported freight, and infrastructure such as bridges; and
  • Personal (20 percent of the market): Protects high-value niche items, including fine art and jewelry.

Pet insurance, once a subset of inland marine, is reported and tracked as its own entity as of 2024.

Predictors of Premium Changes

Macroeconomic factors – such as the cost of freight transportation, construction, and goods like glass and cattle – are major indicators of premium changes in the inland marine market. Unlike other insurance lines that can be derailed by legal system abuse or complex liability lawsuits, inland marine remains tied to the actual value of physical objects. This means growth occurs whenever the country is building, shipping, and buying durable goods.

During challenging economic cycles, the line has shown remarkable resilience. While the COVID-19 pandemic caused a brief contraction in 2020 due to travel and construction shutdowns, the industry bounced back quickly, with premiums growing by double digits in 2021 and 2022 and again by 6.7 percent in 2023 and 8.4 percent in 2024.

Assessing Frequency and Severity

Analyzing exactly how often claims occur (frequency) and how much they cost (severity) is difficult because inland marine claim count data is not included in public reporting. Additionally, because this line covers a diverse range of risks, gathering clear data can be challenging. However, public data on freight traffic, railroad collisions, equipment investments, and other measurements of goods in transit may serve as proxies to fill in the gaps.

  • Frequency: Changes in nominal GDP highly correlate with exposure. The trend suggests the line is sensitive to actual economic conditions rather than “moral hazard,” or the risk that someone might act dishonestly because they are insured.
  • Severity: Similarly, there is a high correlation of 0.76 with changes in the ratio of actual inland marine incurred losses to GDP. This finding confirms inland marine is a property-damage line rooted in the tangible economy.

A Highly Competitive Marketplace

One way the Department of Justice measures market concentration is through the Herfindahl-Hirschman Index (HHI). Between 2015 and 2024, the HHI for inland marine decreased at a compound annual rate of -4.9 percent, indicating a more open and diverse market. In 2024, every single state, including the District of Columbia and Puerto Rico, remained below the “highly concentrated” threshold.

The recent decision to report pet insurance separately has also clarified the landscape. While pet insurance itself is more concentrated, the broader inland marine market remains a robust field where many carriers compete for business.

Learn More:

Understanding Inland Marine Insurance

Homeowners Insurance, Insurers and the Economy, Legal Environment

Lessons for Texas in Florida Legal Reforms

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By Lewis Nibbelin, Research Writer, Triple-I

Texas lawmakers struggling to ease the state’s rising insurance costs might find useful insights from Florida’s sustained commitment to legal system abuse reform.

In recent years, Florida led the nation in claim-related litigation, accounting for 72 percent of homeowners’ insurance lawsuits despite representing only 10 percent of homeowners’ claims. This disparity fueled escalating premium rates and a multi-year insurer exodus, steering state lawmakers toward litigation reforms in 2022 and 2023. These reforms, among other things, curtailed one-way attorney fees and assignment of benefits (AOB) for property insurance claims.

Post-reform, dozens of homeowners’ and auto insurers have filed for premium reductions in the state, with some carriers filing cumulative reductions of more than 20 percent. Renewed market competition from the 18 new property insurers in the Sunshine State also facilitated the lowest number of policies administered by Citizens Property Insurance Corp. – the state-run insurer of last resort – in over a decade, at a 50 percent drop last year from 2024 due to successful depopulation to the private market.

Florida’s growing stability reflects a steady decrease in nuclear verdicts (awards of $10 million or more) and claims-related lawsuits, with every month of 2025 reporting a continued decline in newly filed litigation compared to the same month the previous year, the state governor’s office said in a statement.

Texas insurance premiums spiral

Unlike Florida’s trajectory, Texas once set the gold standard for a fair and balanced court system, leading with a series of 1990s and early 2000s reforms that included a $250,000 cap on noneconomic damages in medical malpractice cases. While this legislation remains intact, continued efforts have stalled under repeated legislative challenges to preexisting and proposed reforms.

Last year’s failed state Senate Bill 30, for instance – based on a similar Florida measure – aimed to restrict “phantom damages” by showing juries the actual amount paid for medical bills, rather than an inflated amount determined by a healthcare provider’s list prices. Such amounts contribute to outsized damage awards in the state, which hosted the highest volume of U.S. nuclear verdicts in 2024.

Insurers must account for these added costs when setting rates, leading to a 19 percent increase in average Texas homeowners’ insurance rates in 2024 after a 21 percent spike in 2023, according to Texas Department of Insurance data. Research from the Insurance Research Council – an affiliate of The Institutes, like Triple-I – ranked Texas as the sixth least affordable state for homeowners’ insurance in 2022, with homeowners on average paying 3.13 percent of median household income for coverage.

These trends earned Texas a spot on the American Tort Reform Foundation’s (ATRF) annual “Judicial Hellhole” watch list last year, which highlighted “a wave of industry-targeted lawsuits” within the state. Noting that excess litigation also costs Texans an average of $1,724 each year, ATRF president Tiger Joyce argued “Texas courts are in jeopardy — and it’s hardworking families who pay the price for lawsuit abuse.”

Texas policymakers would do well to build on the state’s track record of meaningful reform and continue pushing for legislation modeled on Florida’s success. Because the Texas Legislature will not meet again until January 2027, the Lone Star State will remain a difficult litigious environment for defendants and insurers alike for some time.

Learn More:

Florida Premiums Drop Amid Post-Reform Stability

Triple-I Legal System Abuse Awareness Campaign Enters California, Illinois

Take Care in Addressing Homeowners’ Premiums, Bloomberg Cautions Policymakers

Litigation Reform Works: Florida Auto Insurance Premium Rates Declining

New Consumer Guide Highlights Economic Impact of Legal System Abuse and the Need for Reform

Triple-I Brief Highlights Legal System Abuse and Attorney Advertising

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