Rising Nat Cat Costs Challenge Homeowners-Line Carriers — and May Weigh on Municipal Credit

Rising Nat Cat Costs Challenge Homeowners-Line Carriers — and May Weigh on Municipal Credit
As natural disasters grow in frequency and severity, insurers and municipal credit analysts face mounting challenges. Conning’s latest Viewpoint, “Rising Nat Cat Costs Challenge Homeowners-Line Carriers — and May Weigh on Municipal Credit,” explores how escalating catastrophe costs are straining homeowners carriers and reshaping housing markets—factors that directly impact municipal credit quality.

From Louisiana’s climate-driven credit struggles to Texas’s resilience amid repeated disasters, this report highlights the complex interplay between insurance market dynamics, housing affordability, and fiscal health. With insurers exiting high-risk markets and property tax revenues under pressure, municipalities must rethink risk mitigation and infrastructure investment strategies.

Conning’s research offers actionable insights for insurers, asset managers, and municipal investors navigating this evolving landscape. Learn how catastrophe exposure is influencing credit ratings—and what proactive steps can help preserve financial stability.
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