Insurance has been transitioning into a hard market. You may have noticed some recent changes in your insurance rates and premiums. Unfortunately, many of these factors are out of our control because of the current worldly conditions we’re in. A majority of carriers are looking to mitigate their risk exposure by increasing rates across the board and tightening underwriting guidelines/qualifications.
At Staples & Associates, we are here to help provide the best coverage possible and be informative and transparent about the changes you may be seeing.
Environmental & Economic Impact on Insurance
- Inflation: We’ve been seeing it throughout our daily lives. Costs for everything from building supplies to car parts are increasing. This is causing contractors and garages to charge a lot more for repairs. In this case, auto insurance is the one impacted. When inflation increases the value of homes and property, other kinds of property and homeowner’s insurance will see an increase.
- Natural Disasters: The frequency and intensity of storms are causing more damage to property. Wildfires, flooding, and other natural disasters have become increasingly more apparent, causing insurance providers to adjust their rates to cover the risks.
- Labor Shortages: It’s no secret that there have been labor shortages across the country. Because of this, it’s harder to find qualified repairmen and contractors which means finding someone to complete needed repairs will be more labor costs.
- Auto Accidents: Lately, the number of auto accident claims filed annually has gone up by 18% because of more distracted driving. As a result, you may see your car insurance adjust accordingly.
- Supply Chain: Due to shutdowns across the world for the pandemic, there have been supply chain issues in many different industries. This includes supplies that are needed to make repairs or replacements in the event of home or auto accidents.
If you are a current client please contact Staples & Associates if you have experienced any changes or updates to your home or auto insurance. If you’re searching for the right insurance, reach out to our team as well! During this current cycle of inflation, our priority is making sure that you have enough coverage and are prepared in the event of a claim.