by Jan 9, 2024

Home Page » Aggregation!

The New Critical Reference for Home Insurance

It is clear that insurers are struggling to deal with the intensity of weather driven storms. Whether wind, tornadoes, wildfires or even intense rains storms, predictability is a challenge, even with Artificial Intelligence.

“The surge of aggregation has caused a flight away from regional insurers.”


Future claim exposure for insurers is now under the aggregation microscope. Understanding the impact of geographic aggregation is crucial for selecting the right home insurance policy.

What is Aggregation, and what does it mean for Homeowners?

In the simplest terms, aggregation is tabulating the amount of exposure an insurance company has in a specific geographic region. With that basic math, an insurance carrier can decide if they are exposed beyond their capacity and reinsurance limits.

In the past, insurance companies would identify regions where they determined they could be successful and establish attractive rates to capture business in the region.

This new aggregation methodology is a reverse exercise in examining regions with a focus on weather, in relation to the amount of risk to a catastrophic event. As a result, if an insurer is deemed over-exposed non-renewals in home insurance are becoming the norm. At a minimum, the result is more significant rate increases.

Shrinking exposure in coastal areas like Florida is easy to understand, but even the Hamptons are becoming victims of aggregation.

The surge of aggregation has caused a flight away from regional insurers into larger insurance companies that have the necessary spread of risk across the USA to add protection against an aggregation non-renewal.

If you are concerned about your home being a victim of your insurer’s aggregation efforts, drop Kyle an email for a discussion or call 203.698.9342.

Written by: Kyle Shepard

Kyle’s extensive sales and account management expertise transcends both Commercial and Personal Lines. Coupling that with his finance and life insurance licenses, Kyle serves as full service insurance agent for all of his valued clients. The goal for Kyle is to provide tailored risk management to address his client’s current and future exposures, and to optimize wealth preservation.

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