Are you ready to take the exciting leap into homeownership in the sunshine state of Florida? Congratulations on this significant milestone! As you embark on this journey, it's crucial to consider all aspects of homeownership, including the often overlooked but immensely important component of homeowners insurance.
At Anderson Agency Insurance, we understand the unique needs and challenges faced by first-time homebuyers in Florida. As a locally owned insurance agency, we're dedicated to providing personalized guidance and support to help you navigate the complexities of securing the right homeowners insurance policy for your new home. Why is homeowners' insurance so essential for first-time homebuyers in Florida, you ask? Let's delve into the key reasons:
Don't wait until it's too late to protect your new home and investment. Contact us today to learn more about the importance of homeowners insurance for first-time homebuyers in Florida and let us help you find the perfect insurance solution for your needs. Your dream home deserves the best protection, and we're here to make it happen. A lot has changed in the time since Gerald Ford was president and Steve Jobs and Steve Wozniak founded Apple. But here’s something that hasn’t changed much: the pace at which car insurance rates are rising. Car insurance rates are up almost 21% for the 12 months ended in February, according to new Consumer Price Index data released Tuesday. The last time car insurance rates rose that much on an annual basiswas 1976, not counting January, which saw the same annual rate increases. The rise in car insurance rates alone contributed half a percentage point to the overall 3.2% inflation rate last month. It represents one of many obstacles standing in the way of the Federal Reserve’s 2% inflation goal and continues to be a pain point for Americans struggling with some of the highest prices in decades. A confluence of factors is behind the trend. Rising car repair costsThe cost to repair a car is up 6.7% for the year, according to CPI data. That’s a much slower rate compared to recent years. But it’s still much more expensive compared to before the pandemic, said Tim Zawacki, principal research analyst at S&P Global Market Intelligence. Contributing to the rising cost of repairing a car are more expensive auto parts and wage increases for car mechanics due to labor shortages, Zawacki told CNN. More severe and frequent car accidentsThe number of traffic deaths in the U.S. was up by around 7,000 in 2022, to 42,795, compared to before the pandemic, according to the National Highway Traffic Safety Administration’s latest estimates. That has led to an increase in claims that is well above historical averages because of their severity, according to LexisNexis Risk Solutions data. Their data indicates that insurers booked losses on 27% of collision claims in 2022. That’s three percentage points higher than 2021. LexisNexis also attributes that rise to riskier driving behaviors such as speeding, texting behind the wheel and driving under the influence of either drugs or alcohol. Beyond the repair costs associated with more severe car damage, they also “tend to lead to a higher share of claims with attorney representation, which usually ends up being more costly for insurers,” said Zawacki. Not all states have it quite as bad There’s a lot of variation from state to state regarding the car insurance rate increases that drivers are facing. That’s partially because auto insurers price their plans based on the losses they’re incurring on a state-by-state basis, Robert Passmore, vice president for personal lines at American Property Casualty Insurance Association, a trade group representing insurers, previously told CNN. Nevada drivers saw the highest jump — an increase of 38% — in car insurance rates across all states besides Wyoming from January 2023 to February of this year, according to data S&P shared with CNN. (Wyoming wasn’t included because S&P couldn’t collect data from the state.) The minimum required coverage policy that drivers in the Silver State have costs the most across all states, according to Bankrate data as of last month. Meanwhile, drivers in North Carolina saw the smallest bump in car insurance rates, up just 5.5% over that same timeframe. That’s partially due to the state’s unique format that includes a rate bureau that submits filings on behalf of the entire industry. That bureau settled on a 4.5% average statewide increase for 2023 and another 4.5% increase in 2024. “We do expect trends to moderate on a national basis over the course of the year, particularly in the second half of 2024,” Zawacki said. “But that doesn’t mean drivers in some markets won’t continue to see rate increases.” Although we do not have control over what is going on in the auto insurance market, we can ensure that you are getting the best coverage for your needs. If you haven's spoken to your insurance agent in the last 3-6 months, give us a call! We can help you with your insurance needs!
For an auto: The VIN, required by law, is a coded description of all the car's details. It appears in many places on the vehicle and in the documents--sales docs, registration, and insurance policy. If damage or a total loss occurs, the insurer and car owner have a detailed record of what was insured.
For jewelry: No VIN. Insurers must rely on appraisals and lab reports for detailed descriptions of gems and jewelry. Appraisals are crucial! If an auto VIN looked like the one pictured above, you'd be very suspicious, wondering what info was being concealed. At JIBNA we sometimes see appraisals that make us think of such a butchered VIN—jewelry appraisals with "holes" where there should be information. ACORD/JISO 18 is a tool we use to inform the agent and the insured when an appraisal has "holes" where important information should be given. We enter on the form all information given on the appraisal submitted, then our system highlights important details that are missing. Complete details allow JIBNA to appropriately insure the item and, if a loss occurs, to supply an accurate replacement. Yes, there are many insurers who do not require the details that JIBNA does. In fact, most insurers don't even read the appraisal. They just check that it has a date and a valuation. But once a loss occurs, perhaps years later, descriptive details can be hard to retrieve. Lack of important details means the insurer has to guess, and the replacement may not be like the original jewelry the insured so carefully chose. Why leave it up to guesswork later, when the appraiser can—and should—supply all the details upfront? If you receive such a highlighted form from JIBNA, discuss it with the insured. Explain how a detailed appraisal is in their interest, and they should insist on one. They can show their appraiser the highlighted form 18 supplied by the insurer and ask the appraiser to fill in the missing info. ACORD/JISO 18, the Jewelry Appraisal & Claim Evaluation form, is available free of charge from the Jewelry Insurance Standards Organization, www.jiso.org Interested in exploring a jewelry policy or any other insurance policy? We can help. Click the button below to submit a new policy/current policy review and a member of our team will be in contact with you. The Allstate Corporation's ALL shares have advanced 29.1% in the past six months compared with the industry’s 5.3% growth. The Zacks Finance sector and the S&P 500 Composite Index rose 9.6% and 7%, respectively, in the same time frame. With a market capitalization of $37.6 billion, the average volume of shares traded in the last three months was 1.6 million. Rate hikes, the buyout of National General, an improved expense ratio in the Property-Liability unit, a well-performing Protection Services business and a solid financial position continue to drive Allstate’s performance. The property and casualty (P&C) insurer, currently carrying a Zacks Rank #3 (Hold), has a sound surprise history of beating on earnings in three of the trailing four quarters and missing the mark once, delivering an average surprise of 31.50%. Can ALL Retain the Momentum? The Zacks Consensus Estimate for Allstate’s 2024 earnings is pegged at $12.38 per share. The consensus mark for 2023 earnings is pinned at a loss of $1.89 per share. The consensus estimate for 2024 revenues is pegged at $61.8 billion, implying 7.6% growth from the 2023 estimate. The company's earnings witnessed three upward estimate revisions for 2024 in the past 60 days against two in the opposite direction. The top line of Allstate continues to benefit on the back of continually rising P&C insurance premiums and a diversified product suite. P&C insurance premiums improved 10.2% year over year in the first nine months of 2023. Continued rate increases are implemented to counter inflationary headwinds on loss costs, thereby acting as a roadblock to the profits of ALL’s auto insurance business. Allstate pursues acquisitions to enhance capabilities and expand its nationwide presence. The acquisition of National General in 2021 continues to reap benefits for the premiums of the Property-Liability segment and the trend is expected to sustain in the days ahead. Strong contribution from the Protection Services unit of ALL results from a growing product suite and international growth in Allstate Protection Plans. The insurer undertakes technology investments to solidify its position as a cost-effective digital insurer. Cost-cutting initiatives bring about improvement in underwriting results and the expense ratio of the Property-Liability unit. In the first nine months of 2023, the expense ratio improved 230 basis points year over year to 20.9%. Allstate divests underperforming businesses and thereby, redirects capital to boost presence in the personal property-liability market and expand protection solutions. A solid financial stand remains an added advantage for Allstate, substantiated by its growing cash reserves and adequate cash-generating abilities. Cash balance advanced 16.8% from the 2022-end level as of Sep 30, 2023. The financial strength imparts ALL to return capital to shareholders. In February 2023, management approved a 4.7% increase in the quarterly dividend. Allstate boasts an impressive VGM Score of A. VGM Score helps identify stocks with the most attractive value, the best growth and the most promising momentum. Original Story can be found: Allstate (ALL) Up 29% in 6 Months: What's Ahead for Investors? (yahoo.com) If you are a current Allstate customer and concerned about the rising prices we can help. By clicking the button below, our team can review your current policy and shop for one that better serves your needs. Plus, as a locally owned and operated business, we take pride in offering competitive rates and personalized service that you won't find with larger corporations. When you choose us, you're not just a policyholder - you're part of our community.
Allstate and State Farm, both based in Illinois, are said to be raising their homeowners' insurance rates in the state by double digits. Citing the insurance giants’ respective state filings, a Chicago Tribune report said Allstate’s 12.7% hike is being rolled out this week, while State Farm’s 12.3% increase will take effect on different dates – March 15 for new business; May 15, renewals. In terms of dollar amounts, Allstate’s adjustment will mean an additional $237 per year on top of the average annual premium; for State Farm, around $138. It was noted that, across the country, the cost of home insurance has gone up by 23% since January last year. “Estimated January catastrophe losses of $325 million were primarily driven by two events that comprised approximately 80% of the losses, partially offset by favorable reserve re-estimates for prior events.” In terms of auto insurance rates, Allstate plans to pursue rate increases in 10 states after implementing hikes in California, New York, and New Jersey last December. Allstate CEO Tom Wilson told the Tribune: “We still lost money on auto insurance last year. So, it wasn’t that we were raising the prices and going to the bank.” Original Article can be found here: Allstate, State Farm raising rates by double digits | Insurance Business America (insurancebusinessmag.com) At Anderson Agency Insurance, our role is to educate people about what is going on in the insurance industry. Staying in the know is one was we can help you make informed decisions about your insurance!
If we can help in any way please do not hesitate to reach out to our team by clicking the button below. WEST PALM BEACH, Fla. — Two insurance companies have filed requests for rate hikes over 50% with the Florida Office of Insurance Regulation (OIR). Castle Key Insurance is seeking a 53.5% increase and Amica Mutual Insurance is seeking 54.1%. Both companies are seeking increases on specialized policies such as condos and second vacation homes. OIR has scheduled hearings next week on the requests, which is an automatic process on any hikes over 15%, according to Mark Friedlander at the Insurance Information Institute. "We haven't seen these type of rates in quite a long time because the trend has been overall lower rate increases," Friedlander said. Higher costs to fix and replace homes and more severe weather losses have contributed to big increases last year in Florida. State leaders have also been pointing to a calmer insurance market since reforms were passed in December 2022 to cut down on fraudulent litigation. Friedlander said it doesn't seem likely the new rate hike requests will spread among other companies, which already had double-digit hikes in 2023. "The bottom line is, I don’t think it’s a trend that’s starting," Friedlander said. Original Article can be found here: 2 home insurance companies seek rate hikes over 50% (wptv.com) Although this is never what we want to see, at Anderson Agency Insurance, our goal is to keep you informed of what is going on in the insurance industry so that you can make informed decisions and stay ahead of the potential problems. If you would like us to look into a new policy or shop and existing one for you, click the button below.
Comprehensive auto insurance offers a wide-ranging level of protection for your vehicle, covering damages that occur outside of collisions. While liability insurance covers damages to other people's property or injuries they sustain in an accident where you are at fault, comprehensive insurance steps in to protect your own vehicle from a variety of non-collision-related risks. One of the primary benefits of comprehensive coverage is its protection against theft. If your car is stolen, comprehensive insurance can help cover the cost of replacing it, providing valuable financial support during a stressful time. This coverage extends beyond theft to include vandalism, such as if your car is intentionally damaged by graffiti or broken windows. Natural disasters can wreak havoc on vehicles, but comprehensive insurance can provide a safety net in these situations. Whether it's damage from a hailstorm, flooding, or a falling tree branch, this type of coverage can help cover the cost of repairs or even the replacement of your vehicle if it's deemed a total loss. Additionally, comprehensive insurance covers damage caused by animals, such as hitting a deer or having your car scratched by a stray cat. These incidents may seem minor, but they can still result in costly repairs that comprehensive insurance can help mitigate. While comprehensive coverage is not legally required like liability insurance, it's often recommended for drivers who want to protect their investment in their vehicles. By providing coverage for a wide range of risks beyond collisions, comprehensive auto insurance offers valuable peace of mind and financial security for drivers facing unexpected challenges on the road. Interested in learning more, click the button below to get in contact with a member of our team! There’s no relief in sight for US car owners who’ve faced soaring costs of maintaining a vehicle in the past two years. Prices of motor-vehicle insurance rose 20.3% in December from a year earlier, the biggest jump since 1976, according to the Bureau of Labor Statistics. That was the 16th straight month of annual gains exceeding 10%. And insurance rates will probably keep on rising, propelled by higher costs of replacement parts and repairs, Bloomberg Intelligence analysts said last month. Prices of used cars and trucks have come down from their peaks two years ago. But the December consumer-price index released Thursday showed an uptick in used-vehicle costs from the previous month, defying economists forecasts for a decline. The surprise monthly increase in that category was among the main drivers of a acceleration in the overall rate of inflation. Even after a drop in 2023, used-vehicle prices remain up 38% since the start of the pandemic. As for new cars and trucks, prices are not increasing nearly as much as they did in 2022. On an annual basis, they were up only 1% in December. Photo: Photographer: Kyle Grillot/Bloomberg Article shared from Insurance Journal - Original Article can be found here: Auto Insurance Costs Soar by 20% in the US (insurancejournal.com) At Anderson Agency Insurance we recognize how discouraging and frustrating it is that rates continue to rise. Our goal is to provide the best customer service by finding the best policy for YOUR needs. We are on your side.
Click below to allow us the opportunity to review your current policy to see if there is anything we can do to help, or to allow us to shop a new policy for you! Every year there are a few items that you must ensure are checked off of the to-do list! Here are a few things that everyone needs to check into to make sure they are up-to-date and fully protected. Things change year to year, from health to financial situations and we want to make sure you go into this new year more prepared! 1. Schedule your annual physical. 2. Schedule your annual eye appointment. 3. Schedule a dentist appointment. 4. Replace the smoke detector in your home. 5. Have your tires checked and rotated. 6. Schedule a vet appointment for your pet. 7. Begin organizing your tax documents for annual tax filing. 8. Schedule an appraisal appointment for your new holiday jewelry or family heirlooms. 9. Estate Plan in place and up to date. 10. CHECK YOUR INSURANCE POLICIES TO ENSURE THEY ARE UP-TO-DATE and CORRECT. Have a policy that you need to have reviewed or in need of a new insurance policy quote? We can help! Click the button below to submit your request!
Analysts from Standard & Poor’s predicted this week that while personal auto results are starting to stabilize, the continued push for rate in 2024 will set the stage for more faceoffs between regulators and insurers. Tim Zawacki, principal insurance analyst, S&P Global Market Intelligence, and John Iten, senior analyst and P/C sector lead for S&P Global Ratings, offered a current snapshot of results for all segments of the property/casualty insurance industry—and a forecast for next year during S&P’s webinar, “IN/sights: Outlook and Trends for U.S. Insurers—What to Expect in 2024 and Beyond.” For the most part, Zawacki and Iten repeated information they provided earlier this year about the gap between a profitable commercial lines market and a lagging personal lines segment, while noting that a lower level of inflation is pushing personal auto loss costs down—a trend they are hopeful will continue to improve underwriting results in 2024. (See related articles: Improved Auto Insurance Results Coming—But Not Soon Enough: S&P GMI | Wait ‘Til Next Year: Auto Profit Unlikely to Return in ’23, S&P Says) But when Moderator Lynn Bachstetter, global head of cross-product market development for S&P GMI, asked directly what they believe will be the biggest impact P/C insurers will face next year, Zawacki responded, “The interplay between the industry and the regulatory community is going to be interesting.” “I think we will see results get better. I think we will also continue to see rate increases. And I think the juxtaposition of those two things at some point is likely to generate conflict,” he explained. “Given the politics that tend to be involved in such things, that’s going to become a stickier type of thing for the industry to navigate next year,” he said. A day after S&P’s webinar, Allstate’s chief executive told investors he expects price hikes from his company to continue next year. Separating three big states with difficult regulatory environments from the rest of the nation, Allstate CEO Tom Wilson added that failure to get rate increases approved in California, Florida and New York would prompt Allstate to drop existing customers in those three states. Allstate was one of only three companies to be downgraded by the S&P Ratings division this year, according to Iten, who explained that S&P changed its view of the entire P/C sector to negative from stable last October because the distribution of rating outlooks had significantly deteriorated at that point and that all three downgrades were personal lines writers. Speaking at the Goldman Sachs Financial Services Conference on Dec. 5, Wilson suggested that the Northbrook, Illinois insurer isn’t willing to continue to tangle with regulators in the three profit-challenged states. After Wilson reviewed the levels of rate changes taken in 2022 and 2023, and the favorable impacts on the company’s underlying combined ratios (combined ratios excluding catastrophe losses and prior-year reserve changes), Alex Scott, head of North American Research at Goldman Sachs asked the CEO two direct questions seeking the executive’s views on loss cost severity trend and an understanding of why Allstate’s rate hikes appear to be slowing. Wilson noted that auto claim costs went way up after the pandemic—as used car prices soared and the costs to repair cars also went up. In 2023, at the end of the third quarter, “the cost to replace cars has come way down,” Wilson reported, referring to the fact used car prices have declined, pushing down the market value that insurers have to pay for when they declare crashed vehicles to be total losses. In fact, Allstate had predicted a severity trend of 11 percent during the first two quarters of the year, but the company now estimates its around 9 percent, Wilson said, noting that repair costs, bodily injury and litigation costs have not declined along with replacement costs. “We factor that all in, which is why we think we’re going to continue to increase prices next year,” Wilson said. Scott then noted that Allstate achieved lower levels of price hikes in 2023 vs. 2022, asking the CEO whether the change was the result of the problems in getting approvals in certain states or a strategic slowdown for the carrier. Allstate’s leader suggested that both factors were in play. Overall, the Allstate brand put through over 27 percent in rate increases since 2022, 16.9 percent in 2022 and 10.4 percent in 2023, Wilson said. Most “regulators understand it. They know we need to raise prices. They can look at our costs and see we’re paying out more than we’re taking in. And so we’ve been able to get pretty good price increases through just about every state except California, New York and New Jersey…. “We feel good about where we’ve gotten there [in the other states]. So, when you see the average price increase come down a little bit, it’s because in many of those places we’ve achieved what we think we need to,” he said, stressing that Allstate is “not all the way there” in its quest to return to profitability as it waits to earn in the higher premium. “It’ll take a while, but you can see it, right? You can see it coming,” he said. In California and New Jersey, Wilson said Allstate needs 30-plus percent increases in pricing, and about 18 percent in New York. “If we don’t get price increases approved this year in those states, we’re going to move from just not taking on new business to having to say goodbye to some existing customers,” he said, reiterating remarks he made on the last earnings conference call. “We don’t want to do that. I think the regulators would prefer we not do that. We’re not threatening anybody. We’re just saying we can’t afford to lose that much money in those three states.” “So, when you look forward next year, either we’ll be successful and we’ll get the kind of rate increases we need to get us back to the margins we want, or we’re going to get smaller in those states. Either way, it should improve auto insurance profitability,” he said. Back to the 1970s and 80s A day earlier, during the S&P webinar, Iten led off a discussion of the rating agency’s negative outlook for the P/C insurance sector, noting that in addition to three financial strength rating downgrades for personal lines insurers, S&P has announced rating outlook changes on individual groups—three positive ones on the commercial side and four negative outlook changes, again mainly personal lines writers. Across the industry, the current distribution of rating outlooks continues to have a negative bias, with negative outlooks on 11 percent of rated P/C insurance entities. The percentage with a stable outlook is 80 percent, which “is right where we were last October when we changed the sector view,” Iten said, adding that S&P’s rationale for its change in sector view also hasn’t moved much. He said one factor prompting the outlook change was the deterioration that S&P saw in capital last year—mainly driven by the rise in interest rates pushing down the value of bond holdings, but also a function of continued business growth. Growth, he said, increased the required capital for the underwriting risk that companies were assuming. “The situation really hasn’t changed much this year,” he said, noting that interest rates are up, but share repurchases, which were elevated last year, are down now. “And earnings have been fairly strong. So we don’t think there’s been much further [capital] deterioration at least so far this year.” “The other main factor that hasn’t changed is the deterioration that we’ve seen in personal lines,” he said, noting that beyond the spike in inflation that drove up auto loss costs, elevated cat losses were significant factor in the deterioration of personal lines writers last year and continued into 2023. Zawacki commented on personal insurer top lines. “You’re seeing incredible growth in home and auto premiums driven by economic inflation, largely just in terms of the costs to repair and replace vehicles, the replacement costs for homes going up, as well as the risk around insuring both residential and commercial property going up, and in turn reinsurance prices increasing.” Putting some numbers to what he termed “outsized expansion in premium growth,” the S&P GMI analyst said that homeowners insurance premiums across the industry rose 13 percent in the third quarter. “And then for the auto lines, you’re looking at mid-teens expansion, which is something that we haven’t seen in the scope of our data. You really have to go back to the mid-80s, or even potentially the mid to late 1970s when inflation was really rearing its ugly head on lost costs to see that sort of expansion,” he reported, noting that the industry is still playing catch-up with loss cost trends. “It all adds up to another underwriting loss for the P/C industry in the third quarter,” he said, reporting that S&P’s estimate of an underwriting loss in excess of $7 billion is a surprise to professionals writing only commercial lines business. “It’s just not the world they’re living in—a time when combined ratios are above 100. Their results are very strong,” he said. Iten noted that while by-line statutory results are not available for 2023, in 2022, the personal lines sector combined ratio deteriorated by 8 points to 110. Referencing GAAP results for S&P-rated companies that report quarterly, Iten said underlying loss ratios for carriers writing predominantly personal lines improved slightly this year—”anywhere from one to three points for most.” Underlying loss ratios, however, exclude the impacts of catastrophe losses, which have more than offset the few points of improvement. At the Goldman Sachs conference, Wilson said the Allstate brand implemented over 27 percent rate increases since 2022, including 10.4 percent through October of this year, and its National General brand increased rates about 10 percent in both years. “We’ll continue to pursue rate increases to restore auto insurance margins back to target levels,” he said. Allstate’s personal auto underlying combined ratio dropping to 98.8 in third-quarter 2023, from 104.4 in third-quarter 2022. Allstate’s third-quarter financial statements reveal that the personal auto reported combined ratio remained above breakeven at 102.1, but fell more than 15 points from a third-quarter 2022 figure of 117.4 in third-quarter 2022—largely prior-year reserve development. Through nine months, Allstate’s underlying combined ratio was essentially unchanged from last year, 101.2 in 2023 vs. 101.7 in 2022, while the reported combined ratio improved to 104.9, down from 109.3 in 2022. According to Wilson, there’s a vast difference in the underlying combined ratios for the three problem states compared with the other 47. His slides included a graphic illustrating that 59 percent of the 2023 auto book is now producing combined ratios of 100 or better, compared with just 29 percent in 2022. For California, New York and New Jersey together, Allstate’s underlying auto combined ratio for the first nine months of 2023 was 119.6. It was 97.2 for the rest of the states and D.C., a heading on the chart revealed. Wilson also addressed the three states separately during a discussion of distribution channels. Focusing on the Allstate exclusive agent channel, he said that productivity (year-to-date new applications per agent) declined 5 percent in total. But excluding the “three profit-challenged states,” where Allstate has already severely restricted new business, productivity actually rose 13.4 percent. “We’re down over 75 percent in new business in those [three] states,” Wilson said. Personal Lines Property As for homeowners, in spite of the fact that catastrophe losses added 29 points to the third-quarter homeowners combined ratio (104.4), Wilson remains bullish about the line as he pointed out that Allstate’s “generated industry-leading underwriting margins outperforming the industry by 12 points from 2013 to 2022.” Scott asked Wilson specifically about homeowners business in the state of Florida, questioning the CEO about whether last year’s legislative reforms in the state are producing any favorable impact on loss costs. “The legislative changes were primarily around some litigation stuff, which is a good idea. [But] it’s not going to fix Florida,” Wilson said. “And we never thought it. We thought it was a good thing to do. We’re going to keep getting smaller in Florida until such time as you can get an adequate return. And so we’re a fraction of what we used to be. Our market share used to be 12 percent. Maybe we’re less than 3 [percent] today, and we’ll get smaller,” he said. During the S&P webinar, Bachstetter also asked Zawacki to talk about the property insurance situation in Florida and California, noting that many attendees sent in multiple questions about those two states. Zawacki went on to predict that “the idea of socialization of risk,” or property backstops would reemerge in 2024—but not necessarily because of hurricanes in Florida or wildfires in California. Such ideas “surfaced after Katrina, Rita and Wilma back in 2005 on the heels of a very active 2004 hurricane season and ultimately was put on the back burner for a dozen or so years until Irma, Harvey and Maria in 2017,” he said, noting that each time—and even in the case of California wildfires, “these were isolated occurrences that impacted only small segments of the population.” “What we’re seeing in recent years is that the severity and the impact on the industry of convective storms, which are not as bound by geography as hurricane and wildfire, has perhaps changed the thinking [about] states like Iowa, South Dakota, Wisconsin,” where insurers are experienced “some really high loss ratios in the property insurance business.” “So, you’re seeing reinsurers become more reluctant or not at all willing to write business for companies that are heavily concentrated in the upper Midwest,” he said. “As this impact of climate spreads, I think the push to some sort of solution, whether in the form of a backstop or otherwise, will be something that gets discussed again just given the extent of the population that gets impacted by either unaffordable insurance premiums or unavailable insurance premiums.” “We’re seeing in Wisconsin, in particular, the town mutual model that’s existed for 150 years really get washed under in this fallout from the reinsurance market just not having the appetite to be so geographically concentrated among cedents that may have small balance sheets.” “That’s something worth watching” if the frequency and severity of catastrophes of recent years continues, he said. This article was written by the Insurance Journal and the original article can be found here: Regulatory Battles In Personal Lines Ahead; Allstate May Drop Customers (insurancejournal.com)
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