Inflation
Here are some key items that are affecting Home, Auto & Business Insurance.


This is not an attempt for you to feel sorry for the insurance company, but we are simply trying to explain why rates are increasing.
Inflation – All carriers are catching up on inflation. Key factors include:
- CPI has increased 13.9% from 01/2021 – 12/31/2022, compared to historical 2% 10 year average
- Construction Costs have increased over 14% on average.
- Intensifying weather events. Average weather costs have doubled in the last 10 years. https://www.usatoday.com/story/news/nation/2023/09/11/us-sets-record-weather-climate-disasters-2023/70822661007/
- High nuclear claims ($1 Mil+) have increased drastically. Organizations are now investing in Third Part Litigation Funding where people invest in lawsuits, which are ultimately paid by policyholders. https://www.ncei.noaa.gov/access/billions/
- Reinsurance Premiums have increased 37+%, meaning insurers are now on the hook for more claims when a disaster strikes. https://finance.yahoo.com/news/drivers-squeezed-auto-insurance-costs-004453004.html