$262B Catastrophe Gap, EV Premiums Spike 📈 and PCF’s Acquisition Spree

Happy Monday 150 Readers,

This week our research was guided by our own Tesla premiums increasing 21%!

Seems while electric vehicles may be the future, they're also making today's insurance bills increase sharply 📈.

In China, premiums for EVs are leaving traditional cars in the dust, while PCF Insurance is grabbing headlines with its latest deal.

Add surging catastrophes to the mix, and it’s clear the insurance landscape is ever evolving.

Wishing you a great week and as always, don't hesitate to share your thoughts directly to this email!

Yours in service,

— Gaston Brizuela, Senior Insurance and Finance Analyst

In this Issue:

• Disasters Are Costing Billions. Insurance? Falling Short. 

• Charging into Losses: Why EV Insurance Is Costing More 

• PCF Grabs Washington Market With Its 15th Acquisition of 2024

• The Birth of Modern Homeowners Insurance

• Podcast of the week

📚 Data Dive 📚

Disasters Are Costing Billions. Insurance? Falling Short. 

Natural catastrophe losses are through the roof, with $380B in damages in 2023 and only $118B insured. That’s a $262B protection gap! The U.S. leads with $119.7B in losses (thanks, hurricanes and wildfires), but regions like Latin America and Europe are seeing huge uninsured losses. Italy’s floods? $9.8B with only $600M covered. 

The takeaway: Insurers have a massive opportunity to step up.

With extreme weather becoming the norm, it’s time to rethink risk management and coverage strategies to avoid being left exposed when the next storm hits. 

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📈 Trend of the week ⚡

Charging into Losses: Why EV Insurance Is Costing More 

With electric vehicles (EV) premiums rising 81% in China and nearly doubling in the UK, you’d think insurers are cashing in. Think again. China’s combined ratio for electric vehicles has surpassed 100%, meaning losses are mounting despite the higher premiums. 

To turn this around, insurers must collaborate with automakers to use the wealth of vehicle data available. The goal: better risk assessment and more profitable insurance models. 

🤝 Deal of the Week

PCF Grabs Washington Market With Its 15th Acquisition of 2024

PCF Insurance Services is racking up wins, with Top Insurance Associates as the latest in its acquisition spree. This Washington-based firm, with roots in the Pacific Northwest and coverage extending across six states, joins PCF’s Fortiphi Insurance. It’s deal number 15 for PCF in 2024, further expanding its reach and boosting personal and commercial insurance offerings. Looks like PCF isn’t just playing the field—they’re owning it.

⌚ This Day in History

🏠 The Birth of Modern Homeowners Insurance

In September 1950, the Insurance Company of North America (INA) disrupted the market by launching the first multiline homeowners policy. With coverage for fire, theft, and more, and a 20% cost reduction, this new product was an instant success. Priced between $88 and $100, the policy not only provided better protection but also spurred growth in housing, banking, and construction sectors. Today, it’s the backbone of real estate, often required for mortgages. 

Looking to reach Insurance and FIG Executives?

🎧 Podcast of the week

Moody's Reinsurance Pulse: Cyber Threats and Secondary Perils Ahead of RVS 2024

Get ready for RVS 2024 with Moody’s Michael Steel, who covers the latest challenges in reinsurance. This episode unpacks how cyber risks and secondary perils like floods are evolving, and how new tech is stepping up to boost data quality and workflow efficiency. If you’re keeping an eye on the January renewals, this is a must-listen.

📰 Interesting Stuff

🐣 Tweet of the week

"Try not to become a person of success but try to become a person of value."

-Albert Einstein