03/15/2024
Here’s why your insurance premiums are rising for new business and renewals. From an industry article.
Property and casualty underwriting losses, at $38 billion, is a 10 year high, according to analysts at A.M. Best.
Insurance Catastrophe losses (CAT) amounted to $65 billion in 2023. Those are widespread losses associated with storms, wildfires, earthquakes and floods. CAT losses from hail, thunderstorms, wildfires, tornados and the like amounted to $35 billion of that $65 billion total and that amount is almost twice the annual average amount.
Liability claims were up 10% in 2023. Inflation has caused a rise in the amounts paid out for auto and home damage claims.
State Farm reported an underwriting loss of $14 billion in 2023, the largest in their history.
The net investment income of insurance companies is what keeps them afloat. A.M. Best predicts net investment income will grow by 15% in 2024 but underwriting losses will also grow.
The bottom line is that your insurance premiums, no matter which company you use, will continue to increase.
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