Insurance rates & pricing in 2024

Consumers are wondering why insurance rates are rising so drastically:

• Claims payouts have risen:

  • Upper Midwest hail storms.

  • Wildfires in the west.

  • Flooding in many areas of the country.

  • Hurricanes in the south.

• Inflation:

  • The cost to make building repairs have skyrocketed.

  • Automotive replacement parts & labor increased.

• Re-Insurance rates:

  • Insurance companies purchase insurance themselves. The goal is to spread-out insurance exposures. When may areas of the country get hit with serious claims, the rates that your insurance company pays can go-up by 50% or more.

Capacity:

• Due to many of the reasons listed above, insurance companies are restricting coverage and dropping unprofitable lines of business. Shrinking their balance sheets allows them to gain control of their underwriting margins.