This paper was authored by the American Academy of Actuaries (AAA) Homeowners Insurance Task Force, and was published by the AAA Issue Brief in March of 2026. Members of the task force include: Kenneth Doss, MAAA, FCAS, Chairperson; Emma Casehart, MAAA, FCAS, Vice Chairperson; Olga Achkasova, MAAA, ACAS; Yanfei Atwell, MAAA, FCAS; Elaine Brunner, MAAA, FCAS; Lora Dougherty, MAAA, ACAS; Joseph Griffin, MAAA, ACAS; Norman Niami, MAAA, FCAS; David Reyes, MAAA, FCAS; Christopher Schubert, MAAA, FCAS; Arthur Schwartz, MAAA, FCAS; Andrew Thompson, MAAA, FCAS; and James Wencil, MAAA, ACAS.

Download the March 2026 Issue Brief

Pinnacle Senior Consulting Actuaries Joe Griffin and Chris Schubert, and Consulting Actuary James Wencil co-authored a paper for the American Academy of Actuaries (AAA) Homeowners Insurance Task Force.

From the paper:

"In the evolving landscape of homeowners insurance, it is crucial for regulators, policymakers, and actuaries to educate consumers about insurance valuations. This issue brief highlights the disparities between typical home replacement cost valuations and other property valuation methods, and outlines some of the typical coverage options included in a homeowners policy. The discussion stresses the importance of helping consumers understand valuation methods, so they can make informed decisions about choosing appropriate policy coverage limits. Actuaries use data produced by consumers and vendors to determine the amount of insurance available to policyholders, which affects calculations of insurance to value. When policyholders are improperly insured for their risk, rates may not be equitable.

This discussion will also cover potential strategies insurers and regulators can pursue to improve consumer education, ensuring that all stakeholders are equipped to navigate the complexities of insurance coverage. Real-world examples, including common misconceptions about various types of coverage for floods, earthquakes, etc., will illustrate the need for collaboration between insurers, (including agents), regulators, and the public to address consumer challenges and promote a more transparent, accessible homeowners insurance market."

Download the March 2026 Issue Brief to learn more.