Clients ask us all the time why their premiums increase when they haven’t had any claims. It’s a fair question, and one that has several answers. While individual companies may adjust pricing for their specific reasons, below are factors that all insurance companies deal with when setting their rates.
All insurance companies purchase insurance to protect themselves from catastrophic losses. Wild fires, floods, tornadoes and other disasters have caused these rates to go up significantly. Most companies are seeing their premiums rise 30-60%.
The cost to repair property and vehicles have gone up significantly as well. The same number of claims have resulted in 30-40% higher claim payments.
Increased in Catastrophic Claims
While New England has been spared from severe weather the last few years, other parts of the country have had several wild fires, floods, tornadoes, hurricanes & mudslides.
Lack of Investment Income
Investment income has always been a major revenue source for insurance companies. Lower stock market returns the last few years has reduced this revenue source.
Our agency has access to over 30 companies that write insurance for our business clients. We are able to negotiate better premiums and terms due to this market access. You can be confident that we will get you the best program for your company without sacrificing the coverages you need.
Thank you for your business!