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A friend of mine whose family is in the insurance business recently posted this:
The property and casualty insurance industry is going through an inflationary fueled crisis..
I hope you’ll find the info below super useful. It’s a peek into the world of insurance right now, and it’s a big deal regardless of which carrier you’re with.
Hold on tight, because the insurance landscape is going through some rapid changes.
Especially home and auto insurance – no matter where you are, states like California, Florida, Louisiana, and Texas are in the spotlight. Carriers are hitting the brakes on new policies nationwide, and some are even waving goodbye or joining forces with others. They’re trying to navigate an inflationary market, and it’s not easy.
I’m talking daily updates about pausing new business, putting the brakes on writing policies, and new application holds. Some carriers are asking for the full premium upfront or a 20 to 30-day waiting period. There are tweaks to underwriting guidelines too, like wanting preferred business, home and auto bundles, and more. Some carriers won’t reinstate coverage if it lapses, no matter the reason.
So here’s the deal: Brace yourselves because this disruption in the market? It’s coming for you, if it hasn’t already. I’ve personally seen premiums skyrocket, doubling or tripling in a year.
Why? Claims costs have gone through the roof in the past 2 years, making carriers raise premiums or pull out of markets. Some states can’t even get rate increases approved, so they’re hitting pause on new business altogether.
Have auto or home insurance? Well, your rates are going up – if they haven’t already. It’s not personal, it’s business. If you haven’t seen a rate hike, don’t get too comfy. They might show up at your next renewal.
Home rebuild costs are soaring due to materials and labor hikes. Everything’s more expensive, and carriers can’t cover these costs without charging more.
Car repairs? They’ve spiked due to auto parts and labor costs, plus new technology features. That side mirror? Used to be $500 – now it’s triple that!
Medical costs keep climbing, and auto accident injuries are on a crazy rise.
Lawsuits are costly, and settlements are climbing like never before.
Auto accidents are through the roof post-COVID, along with an increase in fatalities.
Considering Solar? ASK you insurance agent first. You may end up shopping because the acceptance is limited at this time.
Reinsurance is at or near capacity in many markets, with unsustainable rising rates.
This is a huge deal for the property & casualty industry, and we’re looking at pricing changes until at least 2024. It’s not forever, but it’s here now.
Here’s how to navigate this tricky market:
Bump up your deductibles for some savings.
Check out safe driving programs for discounts.
Dig into discounts – make sure you’re getting all you’re entitled to.
Keep your policy rock-solid – no cancellations!
Stick with your insurer for smoother sailing.
Follow the rules – no tickets means lower rates.
Handle small claims yourself, save coverage for the big ones.
Trust experienced independent insurance agents that represent multiple carriers to guide you through this market.
Remember, we’re in this together. We’re here to help educate, find you the best coverage, and support you through changes.
Phew! That’s a lot, but it’s crucial info. Let’s be kind to all insurance agents – they’re navigating this too and it's not fun.
The property and casualty insurance industry is going through an inflationary fueled crisis..
I hope you’ll find the info below super useful. It’s a peek into the world of insurance right now, and it’s a big deal regardless of which carrier you’re with.
Hold on tight, because the insurance landscape is going through some rapid changes.
I’m talking daily updates about pausing new business, putting the brakes on writing policies, and new application holds. Some carriers are asking for the full premium upfront or a 20 to 30-day waiting period. There are tweaks to underwriting guidelines too, like wanting preferred business, home and auto bundles, and more. Some carriers won’t reinstate coverage if it lapses, no matter the reason.
So here’s the deal: Brace yourselves because this disruption in the market? It’s coming for you, if it hasn’t already. I’ve personally seen premiums skyrocket, doubling or tripling in a year.
Why? Claims costs have gone through the roof in the past 2 years, making carriers raise premiums or pull out of markets. Some states can’t even get rate increases approved, so they’re hitting pause on new business altogether.
Have auto or home insurance? Well, your rates are going up – if they haven’t already. It’s not personal, it’s business. If you haven’t seen a rate hike, don’t get too comfy. They might show up at your next renewal.
This is a huge deal for the property & casualty industry, and we’re looking at pricing changes until at least 2024. It’s not forever, but it’s here now.
Here’s how to navigate this tricky market:
Phew! That’s a lot, but it’s crucial info. Let’s be kind to all insurance agents – they’re navigating this too and it's not fun.
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