DSNews delivers stories, ideas, links, companies, people, events, and videos impacting the mortgage default servicing industry.
Issue link: http://digital.dsnews.com/i/1535182
69 May 2025 J O U R N A L May 2025 » severe infrastructure damage and long- term community disruption. According to Swiss Re, a global reinsurer offering insurance and risk management for large-scale events, in 2023, Severe Convective Storm (SCS) events led to a record $65 billion in insured losses—hail was the primary culprit. HazardHub's Enhanced Hail Risk Score reveals that 99.72% of U.S. housing units are located in areas with at least some hail risk, though less than 1% are in high-risk zones. Wind and hail are the top causes of homeown- ers insurance claims, with hail alone accounting for about 20% of all P&C insurer payouts. According to FEMA and the U.S. Senate Joint Economic Committee, f looding remains the costliest natural disaster in the United States in terms of total economic impact. According to FEMA and HazardHub: » 90% of all natural disasters involve f looding » 75% of presidential disaster declara- tions are f lood-related » Only 4% of U.S. homeowners carry f lood insurance—despite growing risk from extreme rainfall and out- dated FEMA maps HazardHub identifies Texas, Loui- siana, and California as the states with the greatest riverine f lood loss potential and New Jersey, New York, and Virginia as the most vulnerable to coastal f lood impacts. In terms of total f lood losses, Texas, New Jersey, and Louisiana rank the highest. Spring weather events are becom- ing increasingly destructive. Gallagher Re notes that insured losses from Severe Convective Storms in the United States have grown at a 9.6% annual rate since 2000, driven by factors like subur- ban expansion and increased property exposure in high-risk areas. "Spring no longer means just warm- er weather—it signals the start of the most destructive season for homeown- ers," said Tammy Nichols Schwartz, CPCU and Senior Director of Data and Analytics at Guidewire. "With Haz- ardHub's property-specific risk scores, insurers can better assess exposure, and policyholders can take proactive steps to protect their homes." Severe Convective Storms (SCS) can cause extensive property damage through wind, hail, lightning, heavy rainfall, and tornadoes. These events can also trigger secondary perils, such as mudslides—especially in wildfire burn areas—where subsequent storms pose heightened risks. Common springtime losses in- clude structural damage, fallen trees, shattered windows, power outages, water intrusion, and even mold or food spoilage, all of which may lead to additional living expenses. Seasonal increases in property transactions can also lead to more vacant homes, which are particularly vulnerable to undetect- ed damage and often result in higher claims severity. BANKRUPTCY INQUIRIES REACH PANDEMIC-ERA HIGHS AS TARIFF EFFECTS LOOM A ccording to LegalShield, bankruptcy inquiries jumped to their highest level since early 2020 in Q1, suggesting a possible summer filing boom. According to research from the legal services provider, additional tar- iffs and record-high U.S. consumer debt may further drive already-struggling American households over the edge. According to LegalShield's Consumer Stress Legal Index (CSLI), the warning signs of bankruptcy coincide with a third consecutive quarter of high consumer stress, suggesting that increased financial "When you combine record debt, rising delinquencies, and prolonged financial stress, topped by price pressures driven by tariff uncertainty, the risk of a summer surge in bankruptcy filings becomes very real." —Matt Layton, SVP of Consumer Analytics, LegalShield