The National Association of Insurance Commissioners released a first-of-its-kind national homeowners insurance market analysis this week. Inside that report, two states were flagged as the most unusual market performers in the country.
Arkansas was one of them.
In 2022, Arkansas insurers paid out $2.29 billion in losses against $1.84 billion in collected premium -- a loss ratio of 1.20, meaning they lost 20 cents for every dollar they took in. Then 2023 was worse. Losses hit $2.56 billion against $2.05 billion collected.
Two straight years where Arkansas insurance companies paid out more than they brought in. One of them did not survive it.
The Insurer That Did Not Make It
In September 2023, the Arkansas Insurance Department placed United Home Insurance Company of Paragould into receivership due to insolvency.
United Home also wrote coverage in Kentucky, Missouri, Oklahoma, and Tennessee -- all states that had absorbed significant storm losses in the same period. "Those losses really took their toll on their bottom line," Arkansas Insurance Commissioner Alan McClain told Arkansas Business.
United Home's collapse was not an isolated failure. It was the most visible result of...
Source: https://www.liveinsurancenews.com/arkansas-homeowners-insurance/8574955/
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