Brian Harvey
Southwest Sales Leader
Impacted by wildfires or winter weather? Whether you have a business that's been affected or your personal home and assets are damaged, know that you have a team of people to support you. Find resources here.
With a low cost of living, flavorful cuisine, and a temperate climate, the Southwest attracts many homeowners. Between 2010 and 2020, more than 4.4 million people moved to the region, with growth concentrated in Texas urban centers. Texas is home to four of the top 12 largest cities by population size in the United States: #4 Houston (pop. 2,314,157), #7 San Antonio (pop. 1,495,295), #9 Dallas (pop. 1,302,868), and #12 Austin (pop. 979,882).
The growth in the state and the Southwest are experiencing means newcomers may not be aware of the region's vulnerability to natural disasters and liability risks, as well as the steps they should take to protect their property and assets.
Homeowners in the Southwest, particularly in Texas, need to be prepared for extreme weather events, such as wildfires, ice storms, and hurricanes.
The cost of these events is high. Take Oklahoma, for example. Between 1980 and 2024, there were 115 confirmed weather and climate disaster events, with losses exceeding $1 billion each that affected the state.
These extreme weather events can lead to damaged roofs, flooding, broken pipes, and total property loss. However, homeowners and buyers can mitigate their risk through smart retrofits and upgrades, such as installing a new roof or replumbing when updating or building new construction.
Our Risk Advisory team is dedicated to helping you make the right decisions to build homes that are more resilient to the regional threats of hurricanes, wildfires, severe convective storms, and extreme winter weather events.
Climate change is expected to lead to increased temperatures, prolonged droughts, and more frequent and intense wildfires in the region. These changes will heighten the risks of property damage and loss.
As claims related to natural disasters rise in the region, the Insurance Information Institute predicts that insurance premiums may increase and that companies may offer less coverage in high-risk areas. Right now, the Southwest states are already experiencing a hard market, meaning it is more difficult for residents to find coverage.
Common stories include rate hikes on existing policies, non-renewal notices, and challenges in obtaining new coverage. These staggering stats further highlight the difficulties faced in the region:
Insurers are pulling back the reins and implementing stringent guidelines across the Southwest.
In the U.S., there has also been a roughly 30% increase in liability lawsuits and judgments exceeding $10 million. Such verdicts are often referred to as nuclear verdicts. In the Southwest, the same trend can be seen:
These big jury awards throughout the Southwest are being watched closely by insurers, and they are impacting costs.
It may truly be the wild west online, with a rise in incidents of identity fraud, theft, and cyber attacks in the Southwest. In 2023, Texas was the most targeted location for cyber attacks, and major industries within the state saw their private information made public. Other stats in the Southwest saw this trend ticking up as well.
In one recent incident, hospitals in Oklahoma, New Mexico, and Texas were victims of a severe ransomware attack and had to divert patients to other locations. In Louisiana, there was a staggering data breach where all residents with a state-issued driver's license, ID, or car registration likely had their name, address, Social Security number, birth date, and driver's license number, along with more data, exposed to the cyber attackers. Given this, residents of these states may wish to consider cyber insurance.
As insurance companies react to the severe weather events experienced in the region, so too do state legislatures.
These challenges highlight the importance of partnering with a broker who collaborates with multiple insurance companies to provide tailored expert advice and advocacy. This includes the best carrier recommendations, coverage solutions, pricing options, and guidance. The ease of doing business and the peace of mind from being well protected and informed about their program are invaluable.
Our recent insurance benchmarking survey revealed that nearly 70% of individuals are overpaying for coverage while being underinsured. A best-in-class broker can also help mitigate risks and provide solutions to help lessen a client’s exposure. They have resources in other areas that clients may need but don’t know where to turn (e.g., aviation, yacht, fine art, farm and ranch, commercial, and other lines of business). Whether you are purchasing a new home, seeking coverage after a non-renewal, or considering a switch due to rising premiums, we are here to help you navigate your insurance options in New Mexico, Texas, Oklahoma, Arkansas, and Louisiana.
Schedule an insurance review with a Personal Risk Advisor to gain insights into the liability exposures specific to the Soutwhest and ensure you have adequate insurance in place.
Southwest Sales Leader
Southwest Executive Vice President
Risk Advisory Leader