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

Home Auto Inflation - 2023_1
Home Auto Inflation - 2023_2

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:

  1. CPI has increased 13.9% from 01/2021 – 12/31/2022, compared to historical 2% 10 year average
  2. Construction Costs have increased over 14% on average.
  3. Intensifying weather events.  Average weather costs have doubled in the last 10 years.
  4. 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.
  5. Reinsurance Premiums have increased 37+%, meaning insurers are now on the hook for more claims when a disaster strikes.

Inflation if affecting all companies.  In response they have all created pages to share what is causing rate increases.

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