Updated on 11/21/2024
We extend our heartfelt appreciation for your ongoing support. To facilitate a comprehensive understanding of the current state of the insurance industry, we have provided this link for your perusal. The upcoming years pose increased challenges for the insurance sector, and we regret any inconvenience caused by the impending substantial rise in premiums.
◉ Future Trends in the Insurance Industry: The insurance landscape is undergoing significant changes, exacerbated by the pandemic. In the forthcoming years, adjustments in guidelines during application and renewal, particularly in car and home insurance, are expected to impact our valued customers. Nationally, insurance premiums are anticipated to surge by an average of 20%, with some states, such as Washington, witnessing increases ranging from 18-40% in specific areas. Recent observations indicate general premium hikes of 18%-30%, even in the absence of accidents, violations, changes in claim history, or alterations in insurance scores. This trend is both concerning and challenging for consumers.
Comparative data from insurers reveals a 20% increase in the prices of new cars and a 37% surge in used cars since the pandemic. Escalations in car part costs, accidents, and related expenses contribute to the rising premiums. Likewise, housing insurance is impacted by escalating costs of building materials, with Asphalt Shingles, Concrete Blocks, and Drywall experiencing price hikes of 16.2%, 18.5%, and 20.4%, respectively. Labor shortages further compound the issue, resulting in a shortage of 300,000 workers, compelling insurance companies to adjust premiums to offset losses.
Additionally, certain states, notably CA, FL, GA, TX, NY, and others prone to natural disasters, witness insurance companies refraining from renewals under specific circumstances. This measure is influenced by a combination of new customer intake policies, negligent accidents, and home insurance claims, often stemming from regions with high losses.
◉ Strategies to Mitigate Insurance Premiums: To counter premium increases, clients are advised to maintain a clean record devoid of accidents, violations, and claims, and to consider increasing deductibles. Additional recommendations include avoiding minor claims, reviewing coverage regularly, and exploring available discounts, such as Multi-Policy, Multi-Car, Good Student, Telematic, Defensive Driver, Low Mileage, Continuous Insurance, Paperless, Pay in Full, and Early Quote discounts.
It is crucial to recognize that decisions on premium adjustments are not unilateral, as each state's insurance commissioner determines the rate increase, considering the financial standing of insurance companies. While we understand concerns about premium increases, it is important to note that the setting of insurance premiums is beyond our control. We seek to inform our valued clients of the prevailing circumstances, fostering a transparent understanding.
We wanted to take this opportunity to express our sincere gratitude for being our client and your continued trust. MHH Insurance is committed to providing excellent service and assistance during challenging times. Your continued confidence in us to be your insurance agent is greatly appreciated.
Thank you for entrusting us with your insurance needs.
Sincerely,
Masako Hirano-Holcomb
◉ Future Trends in the Insurance Industry: The insurance landscape is undergoing significant changes, exacerbated by the pandemic. In the forthcoming years, adjustments in guidelines during application and renewal, particularly in car and home insurance, are expected to impact our valued customers. Nationally, insurance premiums are anticipated to surge by an average of 20%, with some states, such as Washington, witnessing increases ranging from 18-40% in specific areas. Recent observations indicate general premium hikes of 18%-30%, even in the absence of accidents, violations, changes in claim history, or alterations in insurance scores. This trend is both concerning and challenging for consumers.
Comparative data from insurers reveals a 20% increase in the prices of new cars and a 37% surge in used cars since the pandemic. Escalations in car part costs, accidents, and related expenses contribute to the rising premiums. Likewise, housing insurance is impacted by escalating costs of building materials, with Asphalt Shingles, Concrete Blocks, and Drywall experiencing price hikes of 16.2%, 18.5%, and 20.4%, respectively. Labor shortages further compound the issue, resulting in a shortage of 300,000 workers, compelling insurance companies to adjust premiums to offset losses.
Additionally, certain states, notably CA, FL, GA, TX, NY, and others prone to natural disasters, witness insurance companies refraining from renewals under specific circumstances. This measure is influenced by a combination of new customer intake policies, negligent accidents, and home insurance claims, often stemming from regions with high losses.
◉ Strategies to Mitigate Insurance Premiums: To counter premium increases, clients are advised to maintain a clean record devoid of accidents, violations, and claims, and to consider increasing deductibles. Additional recommendations include avoiding minor claims, reviewing coverage regularly, and exploring available discounts, such as Multi-Policy, Multi-Car, Good Student, Telematic, Defensive Driver, Low Mileage, Continuous Insurance, Paperless, Pay in Full, and Early Quote discounts.
It is crucial to recognize that decisions on premium adjustments are not unilateral, as each state's insurance commissioner determines the rate increase, considering the financial standing of insurance companies. While we understand concerns about premium increases, it is important to note that the setting of insurance premiums is beyond our control. We seek to inform our valued clients of the prevailing circumstances, fostering a transparent understanding.
We wanted to take this opportunity to express our sincere gratitude for being our client and your continued trust. MHH Insurance is committed to providing excellent service and assistance during challenging times. Your continued confidence in us to be your insurance agent is greatly appreciated.
Thank you for entrusting us with your insurance needs.
Sincerely,
Masako Hirano-Holcomb