09/17/2024
Long post but worth the read if you have been frustrated with rising insurance costs!
** Recently you may have noticed a significant increase in your insurance premiums, there are several factors contributing to these increases.
Auto premiums are factored by accident severity (collisions severity has increased 40% since 2019) medical costs (bodily injury severity has increased) inflation and technology (major factor is the cost and availability of parts and tech components) and reinsurance rates themselves (high loss experience over the last decade)
Property increase factors contributing include volatile weather (higher frequency of damaging severe weather resulting in a high amount of claims) fraud and litigation (resulting in social inflation) inflation itself (cost of items has risen since 2020) and reinsurance rates.
The insurance industry has been hit hard by these challenges, resulting in what is being referred to as a "hard" market. (Market condition that results in higher premiums, more restrictive coverage and companies adapt a more cautious and selective approach when underwriting insurance policies.
The silver lining is that hard markets are cyclical and are often followed by a period where premiums stabilize, coverage becomes more widely available and insurers compete more aggressively for customers. Please keep in mind your risks and protecting your assets during these times! Eliminate high risk behavior, talk to your agent about discounts, deductibles and making sure your coverage is appropriate.
As always, have a great day and be a kind human π