Consumers have seen premiums for homeowners and auto insurance rise sharply in recent years. What’s behind the increases? There are several factors. Prior to 2022, the insurance market went through a phase of lower-than-normal hurricane activity. But hurricane activity really spiked in 2022 and 2023, which coincided with inflationary increases in a lot of different sectors that affected the homeowners insurance industry. If you look at the consumer price index of all consumer goods, prices increased by about 20% overall between 2020 and 2024. But the construction industry was hit much harder—35% to 40% for trade services, lumber, concrete, asphalt and other things that are required to replace and repair homes. In other words, the inflationary impact of goods and services affecting the insurance industry has increased at roughly twice the pace relative to other industries. As a result, we have found that these costs have been passed along to customers.
Dit verhaal komt uit de March 2025 editie van Kiplinger's Personal Finance.
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Dit verhaal komt uit de March 2025 editie van Kiplinger's Personal Finance.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
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