How to Navigate a Hard Insurance Market

We’re in the middle of a once-in-a-generation market cycle, where insurance carriers across the country are changing rates and restricting new business. We call this a hard insurance market. Three main factors are making insurance more expensive and harder to find. They include:

1. High inflation – premiums are not keeping pace with rising replacement costs.
2. Severe weather events – catastrophic losses are regularly reaching $100B annually.
3. Legal system abuse – liability is a growing share of auto losses.

Carriers are also tightening down on policy renewals. Some clients with no previous claim history may find their current carrier will not renew a home or auto policy. Some of the reasons could include older roofs, dead trees or branches near the home, and poorly maintained property. In the case of auto policies, some clients find their auto rates are increasing despite having a clean driving record.

As a consumer you cannot control inflation, weather events, or legal system abuse. However, you can take some actions to improve the renewal process. They include:

• Keeping the gutters around your home clean and free of debris
• Keeping the roof moss-free
• Removing dead trees and branches, especially branches that hang over your home
• Maintaining sidewalks and driveways
• Practicing safe driving habits, including not texting while driving
• Staying current on auto maintenance

Thank you for your business and your trust in ABI Insurance. We realize these are tough economic times for everyone, and we understand you have a choice when it comes to insurance. As an independent insurance broker, we can help you navigate this ever-changing insurance market. We represent many carriers and can shop around to get you the best rate.

The Greek philosopher, Heraclitus, is credited with saying, “Change is the only constant in life.” With this thought in mind, we are reassured a hard market won’t last forever.

If you have questions about your policy, please reach out to us at 503-292-1580.

FAQs

Why is my insurance bill so high?

Insurance companies are raising rates to keep pace with rising costs, so they can continue to pay out claims. They pay to repair and rebuild houses, fix cars, and cover hospital bills for people who’ve been hurt in accidents. These costs have skyrocketed for a bunch of reasons. Some of them you’re probably familiar with, like higher labor and materials costs and supply-chain issues.

But I didn’t have a claim — why am I affected?

Claims history is just one factor in your rates — this increase reflects industry-wide trends that are affecting all policyholders right now. Like any business, insurance companies must raise rates when their costs rise. Right now, they’re dealing with inflation plus unexpected costs from more frequent and severe catastrophic weather events, increasing medical costs and legal system abuse.

Can you get me a better rate?

My job is to help you find the protection you need at a competitive rate. Right now, insurance companies across the board are raising rates and being pickier about what they’ll cover. Let’s review your account to see if switching carriers makes sense — or if adjusting deductibles, coverages or discounts could give you a better overall value.

Content courtesy of Safeco Insurance and ABI Insurance.