I hope that you find the below information useful, and I hope that it helps explain what is happening in the insurance world today. It won’t matter what carrier you are with; this is an industry issue.
The insurance marketplace is tightening up and it's happening fast. It’s happening especially fast for home and auto insurance companies. This is regardless of what state you are in; however, California, Florida, and Texas are being hit especially hard. Carriers are pulling a full hard stop on issuing any new policies across the country, and carriers that have NOT put a moratorium on binding new coverage, are actually just leaving the market or they are selling to other carriers/merging. They simply can't operate profitably in this inflationary market. *EVERY DAY* we are hearing about a pause on new business, or a carrier putting a full stop on writing new policies. Some carriers are requiring *full premium payment* up front for new business or requiring a 20 to 30 day hold on new applications. Carriers may shift underwriting guidelines, so they *only* want preferred business… no claims within 5 years (not 3 anymore), home and auto bundles, etc. Some carriers will NOT reinstate coverage if it lapses, no matter the reason.
The market is disrupted, and it WILL affect you. If it hasn’t yet, it will. I have personally seen premiums double and triple what they were the year before.
The cost of claims has risen exponentially in the past 2 years, thus resulting in the carriers having to raise premiums or pull out of some markets. In some states (California), carriers have applied for rate increases, but have not been able to get them approved, so they simply shut down for new business. If you have an auto or home insurance policy, your rates have gone up, and if they haven’t, they will. This isn't personal, it’s not based on a claim you may or may have not had, it’s simply the cost of doing business. If you have *not* gotten a rate increase, be prepared for one at your next renewal, if you get renewal terms at all.
This is a significant issue affecting the property & casualty industry, and pricing correction is anticipated at least through 2024. It won’t be for forever, but it is here now.
There are some things you can do to help get through this current insurance market:
Lastly, please remember that we are agents for the carriers. We don’t make the rules, we don’t have control over the rates, and we don’t make the decision if your policy is cancelled by the carriers. We are here to help educate, make sure you have the best insurance for your situation, manage your account with the carrier, and claims counsel when needed. We are doing our best to manage carrier changes with client needs.
I hope this message explains a little bit of what is going on in the insurance marketplace. Please be nice to your insurance agent — she is taking the same increases, navigating carrier changes and doing their best to help you through this.
Thank you to some really smart agents that helped put this together and is being shared widely... @jennifertoddklages @adrewel1
If you have questions, please feel free to send us a note at www.schaubinsurance.com/contact or call us at 760-362-4646.