2024 home and auto insurance trends
Whether you’re an insurance veteran or young professional, we all must be aware of new trends and the direction of our industry. Heading into 2024, we’re keeping an eye on some trends that will be important for industry leaders, businesses, and consumers to keep in mind. Continue reading this month’s blog to stay updated!
Home insurance
- Extreme weather will continue to affect insurance costs.
- It’s a trend we’ve all come to recognize, but it will continue to be a challenge in our industry. In Iowa, flooding and derechos are major extreme weather risks.
- Supply chain backlogs and rising material costs will continue to affect the industry.
- Building costs are still up since the pandemic in 2020, which continues to affect home insurance rates.
- Homeowners starting to increase deductibles to temper insurance costs.
- With this method, homeowners can save upfront but face more financial risk in the event of a claim. Regardless, it’s a trend the industry should know about.
- With this method, homeowners can save upfront but face more financial risk in the event of a claim. Regardless, it’s a trend the industry should know about.
Auto insurance
- As inflation persists, costs will continue to rise.
- Inflation continues to be one of the top factors driving increasing insurance costs. The auto insurance industry is forecasted to end the year with a negative underwriting ratio of 109.5, meaning the industry lost 9 cents on every dollar paid out.
- Rising crash and bodily injury rates combine with rising medical costs to increase auto insurance rates.
- Healthcare inflation continues to rise at a rapid rate and when combined with increasing crash and injury rates, insurance companies need to be prepared to pay out larger claims.
- New car technology can require more costly repairs.
- Vehicle repairs are becoming more complex, especially in new cars, which may affect insurance rates.
- Although illegal, uninsurance rates are rising in many states.
- As insurance costs increase, we’re seeing an uptick in uninsured drivers. While this is a risky decision for consumers, it’s one we need to be aware of next year.
- Usage-based insurance (UBI) may become more popular.
- UBI policies track and take into account individual driver behaviors, which may be a better option for some consumers in 2024.
Source: Forbes
Source: Forbes