By: Advocate Brokerage
The insurance market is changing how and who it insures, and this transition is moving faster than anyone in the homeowner or luxury car insurance industry could have predicted. A sudden reluctance to underwrite new policies (and even renew policies for existing clients) is a nationwide phenomenon. Carriers are making the move to offer policies only to customers with a five-year claim-free history. Some providers are leaving the market altogether.
The question is not if this market upheaval will affect you but when.
There is a perfect storm taking place in the insurance marketplace right now. First is the rising cost of claims. The cost to rebuild a home or repair a car has gone up dramatically in recent years, and carriers are raising premiums to cover these expenses.
The increasing frequency and severity of natural disasters, such as fires and floods, is also a factor. Climate change is making these events more common, and they’re costing carriers billions of dollars in claims… and they are not willing or able to absorb these costs.
Finally, the insurance industry now faces a number of other challenges, including inflation, rising interest rates, and increased regulation.
What does this mean for you? If you have auto insurance, a homeowner policy, or any other kind of insurance product, your rates will almost certainly rise. You may also have a harder time finding a new policy, or you may have to pay higher deductibles.
Fortunately, there are ways to offset some of the cost of asset protection. A few points to discuss with your insurance agency include:
Most people will not make it out of the next few years unscathed by the insurance marketplace. But working with a high-end insurance company that puts your needs first can help you weather the weather, whatever may come. Your personal insurance advisor can keep you abreast of changes so that your assets are properly protected.
Want to know more about how insurance is changing? Contact Advocate Brokerage today at 914.723.7100. We’re always happy to answer questions and help you find the right policies for your homes, autos, and businesses.