Strong headwinds brought on by the economic environment, catastrophic weather events, and the impacts of inflation on repair and replacement costs, along with distracted driving leading to the frequency and severity of incidents, continue to impact the entire insurance industry.

Homeowners Affected Across the Country

Insurers are evaluating where and what they can insure at today’s costs.
Increased natural disasters: The frequency and severity of natural disasters, such as hurricanes,
wildfires, and floods, have increased in recent years. This has led to higher insurance claims,
which has put pressure on insurers to raise premiums. State Insurance Departments have to
approve premium increases and some are reluctant to do so. When they can’t increase premiums
sufficiently, they have been rethinking the risks they insure.
Changes in the insurance industry: The insurance industry is consolidating, as larger companies
acquire smaller ones. In places like Florida, more than a dozen insurers have gone into
receivership, and large and small insurers have ceased taking on risks in wildfire-prone areas out
west. This has led to fewer choices for homeowners, which can also drive up premiums.

Will your Auto Insurance Policies Change?

Recent auto insurance increases have been driven by multiple factors: rising vehicle repair costs
due to higher labor costs and more intricate technology that requires repairs even with minor
accidents, and growing instances of insurance fraud. There were more than 300,000 vehicles
damaged by flood waters related to Hurricane Ian according to Carfax. These factors have
contributed to higher claim payouts, prompting insurers to adjust their premiums accordingly to
maintain profitability.

We at Magis are monitoring the marketplace!