Latest news with #insurancepremiums
Yahoo
3 days ago
- Business
- Yahoo
Minnesotans can expect their home insurance to spike 15% this year, says new study — but many say it's already happening
A new study by Insurify is projecting a hike in homeowners insurance premiums — and Minnesotans will be particularly hard hit. Indeed, says that Minnesotans will face the fifth-highest rise in homeowners insurance premium rates in the country by the end of this year. But some are saying it's already happening. Natalie Beazer, along with her sister, Noleene Counts, searched far and wide for an accessible multi-generational home in Rogers, MN. Beazer told 5 Eyewitness News that 'it was just struggle after struggle after struggle.' Then, finally finding a potential new home, they struggled to find an affordable homeowners insurance policy. 'It's still ridiculously high,' Counts told 5 Eyewitness News. Their 'affordable' policy is around $4,000 a year, which is double what they were paying to insure their previous home. Don't miss Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 6 of the easiest ways you can catch up (and fast) You don't have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here's how How extreme weather is fueling insurance price hikes Minnesotans can expect to spend about 15% more this year on their homeowners policy, according to an Insurify report. Realtor Amanda Cox Zuppan told 5 Eyewitness News that her clients are already seeing higher premiums. 'We're seeing premiums double and even triple at this point, and it really is affecting affordability for home buyers … specifically first-time home buyers or lower-income home buyers who are already struggling to come up with those monthly payments.' What's behind these sharp increases? The weather. In 2024, there were 27 confirmed weather or climate disaster events in the U.S. with losses exceeding $1 billion each, according to the National Centers for the Environmental Information (NCEI). But insurers need to stay profitable, so they're passing on the cost of higher claim payouts to customers through higher premiums. The average annual cost of home insurance is predicted to increase 8% to a national average of $3,520 by the end of the year, according to Insurify. That would translate to an estimated $261 over the next 12 months. But some states, like Minnesota, will pay more than others. 'Areas that are more sensitive to climate risks will naturally experience sharper insurance increases, but even less disaster-prone areas will see insurance premiums rise simply due to the fact that repairs have become more costly,' said Joel Berner, senior economist at in a trends analysis piece. 'Labor and material costs continue to grow,' he added, 'which puts insurers in a position where they have to pay out more for full-replacement claims and therefore have to charge higher premiums.' From hurricanes and tornadoes, to hail, flooding and wildfires, some parts of the country are becoming hard to insure. Floridians continue to pay the highest home insurance premiums, which are expected to rise to $15,460 by the end of the year — that's a 9% increase. The biggest culprit? Hurricanes. California homeowners will see their premiums jump 21%, thanks to factors such as the Palisades and Eaton fires. But Louisiana's premiums are rising the fastest. However, homeowners in every state will see price increases from 2% to 27%. Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says — and that 'anyone' can do it What can Minnesota homeowners do? Mark Kulda, former Insurance Federation of Minnesota spokesperson, told 5 Eyewitness News in a previous newscast that an increase in storms in the state is largely to blame for the increase in premiums. 'All of a sudden, in 1998, someone [flipped] the switch, and we had year after year after year of billion-dollar-plus storms come… Now, we have six billion-dollar storms in one year,' he said. 'They're stronger, they're more intense, they're more frequent, and it's costing everybody more money.' Since 1980, Minnesota has experienced 58 weather disasters that have caused an estimated $20 to $50 billion in damages, according to the Insurance Federation of Minnesota, a non-profit state insurance trade association. So what can homeowners do about this? After all, they can't exactly control the weather. The Insurance Federation of Minnesota says they can start by reviewing their homeowners insurance coverage. It may make sense to shop around and compare policy options from different providers or bundle it with other policies from the same provider. The National Association of Insurance Commissioners offers a Consumer Insurance Search tool to help research specific insurance companies, including complaint data. But in high-risk areas, some insurers may stop selling policies altogether. However, the Minnesota Fair Access to Insurance Requirements (FAIR) Plan can help. The FAIR Plan provides 'basic and affordable property insurance' to homeowners 'without regard for environmental hazards.' And, while it hasn't yet launched, the Strengthen Minnesota Homes program will (eventually) provide financial assistance to homeowners 'to improve the resilience of their homes to protect against extreme weather events such as high wind and hail.' What to read next Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now Accredited investors can now buy into this $22 trillion asset class once reserved for elites – and become the landlord of Walmart, Whole Foods or Kroger without lifting a finger. Here's how Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Sign in to access your portfolio
Yahoo
4 days ago
- Business
- Yahoo
Minnesotans can expect their home insurance to spike 15% this year, says new study — but many say it's already happening
A new study by Insurify is projecting a hike in homeowners insurance premiums — and Minnesotans will be particularly hard hit. Indeed, says that Minnesotans will face the fifth-highest rise in homeowners insurance premium rates in the country by the end of this year. But some are saying it's already happening. Natalie Beazer, along with her sister, Noleene Counts, searched far and wide for an accessible multi-generational home in Rogers, MN. Beazer told 5 Eyewitness News that 'it was just struggle after struggle after struggle.' Then, finally finding a potential new home, they struggled to find an affordable homeowners insurance policy. 'It's still ridiculously high,' Counts told 5 Eyewitness News. Their 'affordable' policy is around $4,000 a year, which is double what they were paying to insure their previous home. Don't miss Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 6 of the easiest ways you can catch up (and fast) You don't have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here's how How extreme weather is fueling insurance price hikes Minnesotans can expect to spend about 15% more this year on their homeowners policy, according to an Insurify report. Realtor Amanda Cox Zuppan told 5 Eyewitness News that her clients are already seeing higher premiums. 'We're seeing premiums double and even triple at this point, and it really is affecting affordability for home buyers … specifically first-time home buyers or lower-income home buyers who are already struggling to come up with those monthly payments.' What's behind these sharp increases? The weather. In 2024, there were 27 confirmed weather or climate disaster events in the U.S. with losses exceeding $1 billion each, according to the National Centers for the Environmental Information (NCEI). But insurers need to stay profitable, so they're passing on the cost of higher claim payouts to customers through higher premiums. The average annual cost of home insurance is predicted to increase 8% to a national average of $3,520 by the end of the year, according to Insurify. That would translate to an estimated $261 over the next 12 months. But some states, like Minnesota, will pay more than others. 'Areas that are more sensitive to climate risks will naturally experience sharper insurance increases, but even less disaster-prone areas will see insurance premiums rise simply due to the fact that repairs have become more costly,' said Joel Berner, senior economist at in a trends analysis piece. 'Labor and material costs continue to grow,' he added, 'which puts insurers in a position where they have to pay out more for full-replacement claims and therefore have to charge higher premiums.' From hurricanes and tornadoes, to hail, flooding and wildfires, some parts of the country are becoming hard to insure. Floridians continue to pay the highest home insurance premiums, which are expected to rise to $15,460 by the end of the year — that's a 9% increase. The biggest culprit? Hurricanes. California homeowners will see their premiums jump 21%, thanks to factors such as the Palisades and Eaton fires. But Louisiana's premiums are rising the fastest. However, homeowners in every state will see price increases from 2% to 27%. Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says — and that 'anyone' can do it What can Minnesota homeowners do? Mark Kulda, former Insurance Federation of Minnesota spokesperson, told 5 Eyewitness News in a previous newscast that an increase in storms in the state is largely to blame for the increase in premiums. 'All of a sudden, in 1998, someone [flipped] the switch, and we had year after year after year of billion-dollar-plus storms come… Now, we have six billion-dollar storms in one year,' he said. 'They're stronger, they're more intense, they're more frequent, and it's costing everybody more money.' Since 1980, Minnesota has experienced 58 weather disasters that have caused an estimated $20 to $50 billion in damages, according to the Insurance Federation of Minnesota, a non-profit state insurance trade association. So what can homeowners do about this? After all, they can't exactly control the weather. The Insurance Federation of Minnesota says they can start by reviewing their homeowners insurance coverage. It may make sense to shop around and compare policy options from different providers or bundle it with other policies from the same provider. The National Association of Insurance Commissioners offers a Consumer Insurance Search tool to help research specific insurance companies, including complaint data. But in high-risk areas, some insurers may stop selling policies altogether. However, the Minnesota Fair Access to Insurance Requirements (FAIR) Plan can help. The FAIR Plan provides 'basic and affordable property insurance' to homeowners 'without regard for environmental hazards.' And, while it hasn't yet launched, the Strengthen Minnesota Homes program will (eventually) provide financial assistance to homeowners 'to improve the resilience of their homes to protect against extreme weather events such as high wind and hail.' What to read next Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now Accredited investors can now buy into this $22 trillion asset class once reserved for elites – and become the landlord of Walmart, Whole Foods or Kroger without lifting a finger. Here's how Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. This article provides information only and should not be construed as advice. It is provided without warranty of any kind. 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
Yahoo
4 days ago
- Automotive
- Yahoo
UK's FCA cites external costs behind motor insurance premium hikes
The UK's Financial Conduct Authority (FCA) has found that rising motor insurance premiums are due to 'external cost pressures' and insurers' claims handling practices. The analysis also identified that the rising costs of vehicles, parts and labour, as well as car technology complexities and supply chains, have inflated the premiums. The regulator's report further notes an increase in the costs associated with vehicle rentals, theft-related claims and incidents involving uninsured motorists. It observed that referral fees paid to credit hire organisations and claims management companies have been linked to protracted claims processing and rising costs. The FCA has found concerning claims-handling practices in home and travel insurance, including poor supervision of third-party services, leading to delays and customer complaints and a lack of robust management information systems. It also noted that high rejection rates for storm damage claims, with only 32% resulting in payment, and cash settlements were often used without sufficient consideration of their suitability. The watchdog said it is engaging with the insurance companies identified as having poor practices and is prepared to take regulatory action where it is necessary. Sarah Pritchard, deputy chief executive of the FCA, commented: 'External cost pressures are primarily to blame for recent motor premium increases, not increased firm profits, but there is some more work to do on claims handling, particularly in home and travel. 'That is why we are stepping up – making sure claims are handled promptly and fairly and pushing for a coordinated effort to tackle the root causes of rising motor premiums.' This month, the FCA, along with the Prudential Regulation Authority and Lloyd's, agreed to streamline the approval processes for Lloyd's managing agents. "UK's FCA cites external costs behind motor insurance premium hikes " 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.
Daily Mail
22-07-2025
- Automotive
- Daily Mail
Car insurance price rises 'out of firms' control' says City watchdog
Soaring car insurance premiums are 'outside of firms' control' rather than being driven by insurer profits, the City regulator has said. The Financial Conduct Authority found that the cost of motor claims has been primarily driven by higher prices for cars, parts, labour and energy. The cost of hire vehicles, and the number and cost of theft claims, and uninsured drivers have also contributed to the rise. The average cost of car insurance premiums dropped 7 per cent in the first three months of 2025 compared to a year earlier, from £635 to £539, according to figures from the Association of British Insurers. However, premiums remain higher than two years ago when the average annual policy cost was £478. The FCA found that referral fees from credit hire firms and claims management companies had also pushed prices higher and contributed to slower processing. While the Government's motor taskforce, launched in 2024 to tackle the rising cost of car insurance, may help drive down premiums, the regulator said it would not prevent these kind of cost increases. The FCA also said that insurers across all sectors still needed to handle claims more efficiently. It said it had 'uncovered evidence of poor claims handling practices', particularly in the home and travel sector. This included just under a third of storm damage claims resulting in a payment, and what the FCA describes as 'insufficient management information'. Sarah Pritchard, deputy chief executive of the FCA said: 'Insurance provides peace of mind but people must be confident they can get a fair deal and be treated right when the worst happens.' Pay monthly insurance customers paying more Around 48 per cent of motor and home insurance was paid monthly in 2023, but customers could be paying higher premiums. The FCA report found that some firms that allow customers to spread costs and pay monthly rather than yearly were earning more money than the cost of providing the cover. Analysis found that the margins on these so-called 'premium finance' arrangements ranged between 14 and 62 per cent across insurers, intermediary lenders, intermediary brokers and specialist premium finance providers between 2018 and 2023. The regulator requires insurance premiums charged to customers using premium finance to be at the same level as those paying yearly, unless there is an objective and reasonable basis for the change. Some insurers say that the choice of payment method is correlated with the risk for those paying monthly. The FCA said: 'Where firms charge for premium finance, revenues appear to materially exceed costs for some providers. 'Whereas the profit margin earned on a core insurance policy may be relatively low, we see margins on premium finance that are somewhat higher. 'Different business models will have different ways of recovering costs. 'In some cases, they recover all costs through the insurance product itself, or recoup returns on lower margin insurance product through higher APRs [annual percentage rates].' As yet, the FCA will not introduce a cap or any other measures to encourage insurers to equalise premiums. Hannah Gurga, director general of the ABI said: 'Having the option to pay for insurance in monthly instalments can provide flexibility for those who need to manage their budgets. 'Offering this service does involve costs for insurers, and firms also have to keep cover in place for a period of time if a payment is delayed or missed. 'Our Premium Finance Principles, which we published last year, outline that any charges should be fair, transparent and reflective of the costs that the insurer faces. 'We'll continue to work with our members on this matter and engage with the FCA's review.'
Zawya
02-06-2025
- Business
- Zawya
Rising insurance premiums reshape consumer spending in the UAE, NielsenIQ report reveals
70% of consumers expressed a willingness to pay a premium for products that offer durability and longevity 76% of consumers in the Middle East and Africa are actively seeking additional income streams beyond their primary jobs Dubai, UAE: A recent report from NIQ reveals that increasing insurance premiums are significantly altering consumer behavior in the UAE, prompting individuals to reconsider their spending strategies and adopt new cost-saving measures. With over half of surveyed consumers indicating increases in their insurance premiums—and more than 80% expecting further hikes—many are adjusting their financial plans accordingly. Auto insurance, in particular, has seen a significant rise, prompting consumers to seek smarter and more sustainable financial solutions. Strategic Spending and Smart Solutions Over 70% of consumers are actively utilising loyalty rewards, no-claims discounts, and reduced coverage levels to manage costs. In response to inflationary pressures, many are also shifting their focus towards products and services that promise long-term value. NIQ's latest Consumer Outlook report shows that 76% of consumers in the Middle East and Africa are pursuing additional income streams and spending with more deliberate intent than in previous years. ' While inflation is beginning to ease, its impact on household budgets remains,' Rahul Dixit, Strategic Analytics & Insights Leader, Arabian Peninsula & Pakistan, NIQ said . ' Consumers are adapting by redefining what value means to them—favouring durability, longevity, and predictability in their purchases.' Understanding the discrepancy between consumer intention and behaviour—the 'say-do' gap—is crucial. Businesses that accurately identify this gap will be better equipped to meet evolving expectations and uncover new growth opportunities. Multi-Year Insurance Policies Gain Traction This value-driven mindset is also influencing insurance choices. A growing number of consumers in the UAE—76%, according to NIQ—are expressing a strong interest in multi-year fixed-rate auto insurance policies, seeking protection against future premium fluctuations. Rethinking Value in a Shifting Market Traditional tactics such as price discounts or increased advertising are no longer sufficient to influence consumer decisions. The concept of value has become more complex, shaped by context, timing, and subconscious influences. NIQ highlights the significance of a data-driven approach that captures not only what consumers express but also how they behave. * based on an online panel based survey of 300 car owners residing in UAE, conducted in March 2025 @ 4.75% margin of error & 90% confidence level. About NielsenIQ NIQ is a leading consumer intelligence company, delivering the most complete understanding of consumer buying behavior and revealing new pathways to growth. NIQ combined with GfK in 2023, bringing together two industry leaders with unparalleled global reach. Our global reach spans over 90 countries covering approximately 85% of the world's population and more than $ 7.2 trillion in global consumer spend. With a holistic retail read and the most comprehensive consumer insights—delivered with advanced analytics through state-of-the-art platforms—NIQ delivers the Full View™. For more information, please visit
