via Travelers Insurance Company 
A Leading Driver of Rising Property Insurance Costs
When the eye of the storm wreaks havoc, many commercial properties are faced with the aftermath. In 2022, hurricanes, floods, tornadoes, wildfires and blizzards continued to strain the industry at an alarming rate. Catastrophes plus the mounting costs of building materials and four other driving forces are increasing the cost of property insurance.
Catastrophe Losses: Over the past five years in the United States, 89 events have generated losses of more than $1 billion each.¹
Reinsurance: In early 2023, the gap between reinsurance supply and demand was estimated at $60 billion, three times what it was the previous fall.²
Property Replacement Costs: Over the past three years, the cost of structural steel increased by 55% and the price of lumber increased by 35%.³
Skilled Labor Shortage: Associated General Contractors of America found that nine out of 10 contractors are struggling to find skilled labor and are delaying projects as a result.4
© 2023 The Travelers Indemnity Company. All rights reserved. The Travelers Indemnity Company, One Tower Square, Hartford, CT 06183
¹NOAA
² Artemis
³ Bureau of Labor Stastics
4 Associated General Contractors of America
This material does not amend, or otherwise affect, the provisions or coverages of any insurance policy or bond issued by Travelers. It is not a representation that coverage does or does not exist for any particular claim or loss under any such policy or bond. Coverage depends on the facts and circumstances involved in the claim or loss, all applicable policy or bond provisions, and any applicable law. Availability of coverage referenced in this document can depend on underwriting qualifications and state regulations.
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