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  "documentTitle": "Homeowner availability study",
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  "notes": "Includes a detailed disclaimer regarding the definition of rate increases vs. premium increases.",
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      "text": "The magnitude of the difference between rate adjustments undertaken in the state vs. the rest of the country highlights the industry's perspective on the profitability of homeowner policies in CO.",
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      "text": "Approved rate changes by year – Homeowners – Selected Carriers",
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      "text": "The magnitude of the difference between rate adjustments undertaken in the state vs. the rest of the country highlights the industry’s perspective on the profitability of homeowner policies in CO. Disclaimer: This graph displays rate increases, which refers to direct changes to the rate levels and parameters in the insurers’ rating plans. In addition to this, certain changes in policy features can lead to a premium increase beyond that which is driven by a rate increase. Examples of changes to policy features include: addition of new endorsements, revisions to reconstruction cost estimates (generally due to inflation), and adverse claim activity which could trigger surcharges at renewal.",
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      "text": "1. Environment of persisting high Loss & DCC ratios: In light of these findings regarding the performance of the Colorado market, it is not surprising to see carriers making upward rate adjustments. 2. Impact of wildfires on these results: It is widely known that the state of Colorado has experienced significant wildfire activity over the recent years, which contributed – at least partially – to the high loss ratios. As such, we anticipate that at least some of the profitability measures implemented by carriers in the state may have been targeted towards the wildfire risk. 3. Availability/Affordability considerations: Extended periods of unprofitability coupled with catastrophic exposures may force some carriers to implement drastic pricing and/or underwriting measures in order to restore adequate profit margins, which – at least in the short term – may lead to availability and/or affordability concerns for the population seeking coverage. The time is right to get a pulse of the market and assess whether major shifts are currently taking place.",
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      "text": "Rate change percentage: 6.4%",
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      "text": "Source: S&P Market Intelligence, Oliver Wyman Analysis",
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      "text": "These profitability struggles have generated rate increases that materially outpaced the countrywide averages.",
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