The Rising Cost of Property & Casualty Insurance
Webb Financial Group
Many consumers have seen dramatic changes in insurance costs over the last several years that will likely continue into 2024. According to Robert Gordon, Sr Vice President of Policy, Research & International for the American Property Casualty Insurance Association, the insurance industry is being hit hard by many factors including government regulations, input costs, natural catastrophes, and legal system abuses.
The Property & Casualty (P&C) industry has faced one of the toughest operating environments in recent years. Growing losses are partially due to catastrophic natural disasters like hurricanes in Florida and wildfires in California and the Northwest. Costs
of construction have dramatically risen due to inflation, supply chain issues, and additions of expensive home & auto technology. Medical expenses continue to increase. These factors, along with the economic environment, impact the entire industry. This has led to higher rates for back-up insurance (reinsurance). Additionally, some private and larger insurance companies are limiting coverage in certain areas to reduce their risk. In some cases, they are discontinuing coverage entirely.
This may result in increases to premiums and fewer policy choices, along with limited available P&C providers. It’s important to work with a reputable insurance representative to review your policies, confirm there is sufficient coverage for your insurance needs, and to understand any available options. There may be a number of products that can cover the everchanging P&C landscape so using an industry expert can help you find the right solutions.