Why are my insurance premiums increasing

Recently many of our insureds are calling our agency and ask “Why are my insurance premiums increasing?”  A simple question, with a rather complex answer.  Our current economy have several Factors Influencing Insurance Premiums Across the Industry

AUTO AND HOME INSURANCE INDUSTRY PRESSURES
With the impact of inflation on vehicle repair and replacement costs, the personal auto insurance industry combined ratio (which illustrates the difference between claims and expenses paid and premiums collected by insurers) increased to nearly 101.5% in 2021 from 92.5% in 2020.1

New vehicle sales and inventory were down overall in 2022, and car prices were up.3
Auto repair and parts costs are up.4 Bodily injury claim severity is up.5
Healthcare spending and pricing have increased.6, 7

All these trends were gather from the various industry sources listed below:

1III.org: https://www.iii.org/insuranceindustryblog/2022/08/; 2AON Regional Catastrophe Review: https://www.aon.com/getmedia/f34ec133-3175-406c-9e0b-25cea768c5cf/20230125-weather-climate-catastrophe-insight.pdf
3KellyBlueBook.com: https://www.kbb.com/car-advice/when-will-car-prices-drop/#link2; 4CCC Intelligent Solutions: https://cccis.com/news-and-insights/insights/whats-ahead-for-vehicle-repair-total-loss-costs/
5LexisNexis® Risk Solutions: https://risk.lexisnexis.com/insights-resources/white-paper/2021-auto-insurance-trends-report; 6U.S. Bureau of Labor Statistics: Consumer Price Index: 2022 in Review: https://www.bls.gov/opub/ted/2023/consumer-priceindex-
2022-in-review.htm; 7Centers for Medicare & Medicaid Services: https://www.cms.gov/Research-Statistics-Data-and-Systems/Statistics-Trends-and-Reports/NationalHealthExpendData/NHE-Fact-Sheet

CONTRIBUTING FACTORS TO NATIONAL AND HOME INSURANCE PREMIUM INCREASES

Home repair and building costs are increasing.8 Supply chain disruptions continue to be a factor.8 Insured losses are rising related

8III.org: https://www.iii.org/sites/default/files/docs/pdf/state_of_the_risk_homeowners_02032022.pdf