Latest news with #NationalAssociationofInsuranceCommissioners
Forbes
01-07-2025
- Business
- Forbes
Shelter Homeowners Insurance Review 2025
To identify the best home insurance companies, we analyzed costs around the country, policy information and complaints against insurers. We scored companies based on these factors: Home insurance rates (40% of score): We analyzed average rates for each insurance company for homes with dwelling coverage of $200,000, $350,000, $500,000 and $750,000 with 50% personal property coverage, 10% loss of use coverage, a $500 deductible, $1,000 guest medical coverage and $100,000 liability coverage for a 40-year-old woman with good credit. Source: Quadrant Information Services . Complaints (20% of score): We used complaint data from state insurance departments across the country. Most home insurance complaints center on claims, including delays, unsatisfactory settlements and denials. Source: National Association of Insurance Commissioners . Availability of extended and/or guaranteed replacement cost coverage (20% of score): Extra dwelling coverage is valuable in the event of large disasters, when construction materials and labor costs tend to spike. We gave points to companies that offer either extended or guaranteed replacement cost coverage. Source: Forbes Advisor research. Digital experience (10% of score): We analyzed the quality of each company's mobile app and website. We evaluated home insurers on: If there's a mobile app. If you can submit claims online. If you can pay online. If there's a useful website search function. If there's a live chat that provides helpful information. If the company has a Facebook account that is updated regularly. If you can get a quote online. Source: Forbes Advisor research. Banned dog lists (10% of score): Banned dog breed lists can make homeowners ineligible for coverage. (A company's banned dog list might not be applicable in all states.) While any homeowners insurance company could potentially ban any dog with a biting history, not all put a ban on specific breeds. Source: Forbes Advisor research.
Business Wire
23-06-2025
- Business
- Business Wire
Best's Market Segment Report: 2024 Pricing Cuts in U.S. Cyber Generated First-Ever Reduction in Direct Premiums Written
BUSINESS WIRE)--Premiums generated from cyber insurance coverage declined by 2.3% to slightly less than $7.1 billion in 2024 compared with a year earlier, marking the first ever decrease in the segment since the data was first collected in 2015, according to a new AM Best report. Despite the drop in premium, the loss ratio for the U.S. cyber segment remained below the 50% mark in 2024, suggesting that the line of coverage is still profitable for those who choose to underwrite the risk. According to the report, the decrease in premiums is driven more by pricing changes than any changes in exposure. 'When premium grew during the hard market cycle, the growth significantly outpaced the pricing increases, indicating that demand for cyber insurance was increasing as well,' said Christopher Graham, senior industry analyst, AM Best. 'Considering that the premium decrease is close to the pricing decrease, that would indicate that the demand for cyber insurance is steady.' However, the report also notes that some large organizations may be shifting their cyber exposure to their own single-parent captive insurers. Such organizations that have a favorable loss experience find it beneficial to maintain the premium under the parent company's structure and typically don't file the related cyber data reports with the National Association of Insurance Commissioners. Among the report's other highlights: Much of the new capacity during the hard market came from surplus lines writers. Those carriers have held—and marginally increased—their market share even as the total premium slightly contracted; Surplus lines paper remains the prime spot for complicated cyber risks, and this is evident through the split among primary, excess, and endorsement coverage. While surplus lines writers benefited from the hard market pricing of 2020-2022, that benefit seems to have now worn off. When new writers enter the market during a hard market cycle, those writers get the benefit of the stronger pricing without having to pay the legacy losses. AM Best has maintained a stable outlook on the global cyber insurance segment, citing a cautious level of underwriting in a dynamic risk environment. To access the full copy of the Best's Market Segment Report on U.S. cyber insurance, please visit
San Francisco Chronicle
20-06-2025
- Business
- San Francisco Chronicle
This California city has one of nation's worst home insurance trajectories, report finds
The cost of home insurance is rising at a much faster pace than the income of homeowners themselves, especially in Sacramento, according to new research from Zillow. Since 2019, insurance premiums across the United States have risen by an estimated 38% while homeowner income has risen just 22%, the research found. The top five metro areas with the highest premium growth were all located in hurricane-prone Florida with just one exception: Sacramento. The Census-designated Sacramento metro area stretches all the way east to Lake Tahoe, encompassing a large swath of Sierra Nevada foothill communities with high fire risk. Zillow's climate risk data, supplied by the First Street Foundation, suggests 46% of homes in the area are at major risk of wildfire. As a result, many insurers have stopped writing policies in the region as a whole, or are only offering them at a high price, according to Irene Sabourin, an independent broker based in Citrus Heights (Sacramento County). She said premiums have generally risen around 10% to 20% over the past year. The increased costs hit even before homeowners pay their first premium bill, Sabourin said. Many of her clients living in older homes can only secure coverage after going through costly upgrades to their electrical wiring, plumbing or roofs. If they can't, they'll likely end up on the California FAIR Plan, the state's insurer of last resort. That's been the path of many homeowners living in the foothills, such as Auburn and Placerville, Sabourin said. From September 2023 to September 2024, the number of Sacramento County residences and businesses insured by the FAIR Plan more than doubled from 464 to 1,124. In adjacent Placer County, there are 15,674 FAIR Plan policies — up 28% from last year. The FAIR Plan is often expensive and requires customers to seek out and pay for a second policy if they want protection against water damage, liability payments and other key types of coverage besides fire. In the analysis of 50 major metro areas, just two bucked the trend: Boston and Hartford, Conn., where insurance premiums have only risen modestly and have been outpaced by the rise in homeowner income. Premiums generally remain much higher in states like Florida and Louisiana than in California, even as California's rates climb. The report estimates the typical premium in Sacramento has risen $648 since 2019, while in Miami that figure is $1,478. As of 2022, the latest data available from the National Association of Insurance Commissioners, the average annual home insurance premium in California was $1,492 compared to $2,677 in Florida. Zillow's analysis relies on homeowners' self-reported insurance premiums from the American Community Survey from 2019 to 2023, according to senior economist Kara Ng. To extend the forecast to 2024 and 2025, Ng used the Bureau of Labor Statistics' price index for home insurance premiums, which is updated monthly. Generally, homeowners have higher incomes than renters and may be able to better weather the rise in costs, Ng said. But the data presents concerns that rising insurance prices could be driving away would-be first-time-homebuyers. In already-expensive California metro areas like San Francisco and Los Angeles, the data shows an increase in insurance costs would have a small impact on the number of listings Zillow defines as affordable for households with median incomes — ones where the monthly mortgage payments plus other recurring expenses like insurance would not exceed 30% of the median income. 'For places where houses are very unaffordable to begin with, just adding a little bit more unaffordability to the picture doesn't change the fact that it's still unaffordable,' Ng said. 'For cities where you actually have a fighting chance, or closer to a fighting chance, adding additional burden would lower the amount of listings you would have.' In Sacramento, the data shows the number of listings Zillow considers affordable would drop by 6.6% if insurance premiums rise another 20%. Even if prices rise just 5%, the number of affordable listings would decrease by 3%. The San Diego metro area could also lose up to 5.2% of affordable listings if premiums rise by 30%. Sabourin said homebuyers should contact an insurance agent to get a quote before they put an offer in on a house. Those that don't are often shocked by the price of insurance in Sacramento, she said. Though the situation has improved marginally over the last few months, Sabourin said the pain may ease only when more carriers arrive, delivering competition. 'Until we get more markets in place, the general idea is that most people have to factor in a 25% rate increase,' Sabourin said.
Yahoo
28-05-2025
- Business
- Yahoo
Why isn't Gen Z buying insurance?
As Gen Z comes of age, it is quickly becoming one of the most influential consumer groups in the global economy. Born between 1997 and 2012, this digital-native generation is known for its tech savviness, pragmatic approach to money, and social consciousness. But one sector that is still struggling to capture its attention is insurance. A 2024 study by the National Association of Insurance Commissioners (NAIC) found that fewer than 21% of Gen Z adults carry renters insurance. Life insurance rates are even lower. A study conducted by Smart Money People in March 2024 revealed that Gen Z falls behind other generations when it comes to key insurance products. Only 5% have contents insurance, 24% have life insurance, and 30% have travel insurance. This disengagement stems from more than just apathy. Gen Z is navigating an unstable job market and a challenging economic reality, from rising housing costs to student debt. In this environment, insurance can seem like a luxury or merely something to think about later. Gen Z-ers are sceptical of traditional financial institutions. They are digital natives who have grown up amid economic instability and online misinformation. Many see insurance companies as opaque, profit-driven entities that make it hard to understand coverage and even harder to file a claim. There is also a common belief among young people that insurance is only necessary when you are older or have a family. The mindsets of 'I am healthy and don't need life insurance' or 'I'll worry about contents insurance if something happens' help contribute to underinsurance. Many Gen Z individuals do not fully understand the value of insurance or trust insurance providers. A poll indicated that two-thirds of respondents from this age group believe that a lack of understanding or trust is a significant barrier to purchasing insurance. More worryingly, a considerable portion of Gen Z (48.1%) reported not thinking about insurance at all or assuming it was covered by other platforms they use. The current disconnect represents a unique opportunity for the insurance industry to reinvent itself and meet Gen Z's needs. Insurers can start by teaming up with content creators on TikTok, Instagram, and YouTube to break down insurance myths in relatable ways. Bite-sized videos explaining renters' insurance or how deductibles work would make a big impact. Gen Z has grown up in a digital environment where easy payments and streamlined processes are expected. They demand simple payment options such as mobile-first channels and digital wallets when considering any insurance purchases. Insurers should create flexible insurance products in the form of micro-policies, such as insuring a phone for a week, bundling lifestyle-specific coverage, or covering gig income for a month. Subscription-style pricing and the ability to turn coverage on and off digitally will appeal to Gen Z's needs and flexibility. The combination of low homeownership rates, financial constraints, a lack of understanding about insurance, a demand for digital solutions, and a perception that insurance is a low priority contributes to Gen Z's hesitance to purchase. Insurance providers must adapt to these dynamics to effectively engage this new generation. Gen Z is not anti-insurance, they just do not see themselves reflected in how it is traditionally sold. To earn their trust and loyalty, the industry needs to simplify, digitize, and humanise its offerings. This should be more than a marketing shift but a total transformation of its business mindset. "Why isn't Gen Z buying insurance?" was originally created and published by Life Insurance International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
09-05-2025
- Business
- Bloomberg
Disaster spending hits new highs
Costs rise to 3.3% of GDP, with Carolinas hardest hit Climate-related costs have risen to a record in dollar terms over the past year, but as a percent of GDP the 3.3% is still slightly less than in 2017 (Hurricanes Harvey, Irma) and 2005 (Hurricane Katrina). At the state level, North and South Carolina were particularly hard hit by Hurricane Helene, which caused over $78 billion in economic losses, equivalent to around 8-9% in local GDP terms, according to BI's Climate Damages Tracker. Peril premiums hit $310 billion, but cushion eroding The rise in fires, floods and storms has forced insurers to reprice risk over the past several years, raising rates by as much as 22% in 2023 and pushing total multi-peril premiums (home, fire, commercial, farmer and allied lines) above $300 billion, according to the National Association of Insurance Commissioners. S&P Global expects premiums to rise 6.2% in 2025. The P&C industry has struggled to price these risks in a way that secures a stable stream of returns. Net premium after loss (total premiums less insured payouts) fell below zero in 2017 and approached zero three times in the past few years. The big 2023 rate hikes helped create a buffer for Allstate and other P&C insurers, but the cushion has been eroded in recent months by developments including an estimated $40 billion bill for the LA wildfires. Government spending starting to fade from sight Federal and state governments have provided nearly $1.3 trillion over the past 20 years to local communities to help them recover sooner from fires, floods and storms. Stimulus measures like the IRA and the infrastructure law have provided the most support ($600 billion), followed by FEMA ($320 billion) and the Department of Housing and Urban Development ($180 billion). States contributed $132 billion, largely in the form of matching funds. Though these funds have provided a needed lifeline to states, most of the programs are winding down, with President Donald Trump signaling that he wants states to take more responsibility for recovery efforts. Texas hardest hit by climate followed by California Total climate-related costs in the US have totaled $10 trillion over the past 20 years, according to the BI Climate Damages Tracker. At the state level, Texas has been hardest hit in dollar terms, with$1.1 trillion in costs, followed by California ($938 billion) and Florida ($763 billion). Though these costs are substantial, the overall size of these states' economies ($10.4 trillion combined) means the impacts on a GDP basis are generally lower than for lower-GDP states like Louisiana ($425 billion in damages, with a $327 billion GDP in 2024). How does BI's damages tracker calculate spending? In an effort to capture how climate-related costs flow back into the economy, the BI Damages Tracker assigns different spending curves to different types of costs. For example, insured losses, which are generally paid out over one year, with the majority paid in the first six month, are calculated using a 12-month gamma curve, which skews spending toward the first few months following the event. In this same way, uninsured losses are calculated using a 24-month gamma curve, and government spending is assessed with a 36-month gamma curve, which is based on distributions reviewed in federal spending reports.
