While no insurance agent has a crystal ball for the coming year, 2024 will surely be an interesting one for insurance shoppers. In this article, we can share some indications and trends that are developing in the marketplace that may impact you.
Rates will continue to rise throughout 2024
In 2023, nearly every single insurance company on the marketplace paid out more dollars in claims than they collected in premium revenue. That’s a trend that continued from the previous year which means insurance companies simply have not been profitable in recent memory. The major factors for this include increased catastrophic storm damage and increased cost to repair just about anything from homes to automobiles. Insurance companies have tightened their belts and cut back on expenses where they could. Most insurance customers, however, can expect to see rate increases flow through every carrier in the coming year as insurance companies increase their rates to get back to profitability.
Insurance companies will continue to cut back on eligibility and tighten their underwriting requirements
A continuing theme for the coming year is insurance companies being more restrictive when they are writing new policies. From claims history to roof year eligibility, customers may find they have limited options when shopping for insurance. Some insurance companies are restricting eligibility for new policies in Kansas unless the roof age is ten years old or newer. Other companies are restricting eligibility if you have had even one prior water related claim. For homeowners shopping for insurance, it will be increasingly important to work with an agency that has access to multiple options since not every company will have the same eligibility requirements.
Some insurance companies may exit the marketplace
Toward the end of 2023, a concerning trend was insurance carriers exiting the market or simply electing not to write policies in some states. That trend is predicted to continue, especially for more weather prone states such as Kansas and Missouri. At least one major carrier in Johnson County, Nationwide Insurance, has paused writing any new policies for the foreseeable future. Other companies are issuing non-renewal notices for customers if they have a roof that is 15 years or older.
What action should the average homeowner take?
If you are currently in the market for homeowner’s insurance, make sure you work with an agent that has access to multiple carriers on the marketplace. If you find yourself being notified by your current insurance carrier that they will not be renewing your policy, make sure you start to work with an Independent Agent early to see what other options you may have with another company.
There are still some great options with most companies to help mitigate increasing costs. Those include making sure you are positioned with the right company, looking at slightly higher deductibles or discussing customer driving apps to help get bigger discounts.
Working with families as their trusted insurance advisor is what we do every day. Connect with us for an insurance review to make sure you are receiving the best rate possible. We are committed to having a long-term relationship with you and making sure you receive the best value on your insurance portfolio in the years to come.
At Flury-Hinderks Insurance, customer education is very important to us, and we are happy to take the time to review coverage and provide counsel for our customers. If you do not have a great relationship with your current insurance agency. Connect with us for an insurance portfolio review today.
