Have you noticed a rise in insurance prices?
If you have, you’re not alone. This year, an astounding amount of claims have been made due to just natural catastrophes. In fact, the global natural catastrophe average annual loss expectancy has doubled in just 10 years. And within the last 5-years, actual Natural Catastrophe losses have averaged a whopping $101 Billion. Now, the loss expectancy for Insurance Companies is at $133 billion. Insurance Companies are being warned that the baseline for the cost of Natural Catastrophes could become greater than $200 billion within the next few years.
To have enough to help cover Natural Catastrophes, Insurance Companies have needed to make some adjustments in price. Factors that drive up insurance prices include:
· Claim Increases for Natural Catastrophes
· Social Inflation
· Legal & Regulatory Changes
Natural Catastrophes include hurricanes, earthquakes, severe convective storms and floods. Severe convective storms actually accounted for about 70% of insured losses in the first half of 2023. A severe convective storm generally has thunder, lightning, rain & strong winds. So if you’ve noticed your insurance payments have risen, there are many factors that could contribute. With our current insurance climate and rise in claims, having insurance is more likely to help you in the long-run. Contact us today for a complimentary quote, personalized to fit your needs.
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