|
The price of everything from food to — the most complained about — gasoline, continues to rise. While prices have dropped a little bit, they are still at record highs.
The inflation rate in the U.S. hit 8.3% in April. It’s down a bit from March’s 8.5% but still very high.
As you know, inflation hits agencies and insurers very hard. Conning just issued a report on how hard it has hit insurance in lower income ratios, reserve losses — and worst of all — higher insurance rates.
Conning says inflation affects different lines differently.
“Using personal automobile as an example for a short-tail insurance, the business will be sensitive to inflation in the future costs of vehicles and as well as medical costs resulting from injuries,” Conning’s report noted. “Workers’ compensation insurance, as a proxy for a long-tail line of business, will not be as sensitive to the changing prices of automobiles but will be impacted by changes in wages, medical expenses and other related costs.”
Liberty Mutual has found inflation has impacted household spending. That — the company says — leads to policyholders to shop for better premium rates. See the story that follows this one, Rising Insurance Rates has Insureds Shopping, for more information on that issue.
QuoteWizard’s researchers found that some states are harder hit than others. It asked people how hard it is to pay bills now when compared to the same time frame in 2021. The number of people having a “very difficult time” paying bills jumped 85% from 2021 to 2022.
** 60% say they are having “some difficulty” meeting their usual household expenses ** 15% say they are having a “very difficult” time paying household expenses ** The “very difficult” time has increased by as much as 201% in some states
The most people having a “very difficult time” are in Louisiana, Florida and Georgia. QuoteWizard found that three PIA Western Alliance states — Washington, Montana and Idaho — are in the top-10 hardest hit.
Top 10
1. Arkansas Percentage having a very difficult time June 2021 — 5% Percentage having a very difficult time May 2022 — 15% Percentage of change since 2021 — 201%
2. Florida Percentage having a very difficult time June 2021 — 8% Percentage having a very difficult time May 2022 — 22% Percentage of change since 2021 — 173%
3. Missouri Percentage having a very difficult time June 2021 — 6% Percentage having a very difficult time May 2022 — 16% Percentage of change since 2021 — 170%
4. Indiana Percentage having a very difficult time June 2021 — 5% Percentage having a very difficult time May 2022 — 13% Percentage of change since 2021 — 169%
5. New Hampshire Percentage having a very difficult time June 2021 — 5% Percentage having a very difficult time May 2022 — 13% Percentage of change since 2021 — 164%
6. Wisconsin Percentage having a very difficult time June 2021 — 5% Percentage having a very difficult time May 2022 — 13% Percentage of change since 2021 — 154%
7. Washington (tie with Louisiana) Percentage having a very difficult time June 2021 — 4% Percentage having a very difficult time May 2022 — 10% Percentage of change since 2021 — 150%
7. Louisiana (tie with Washington) Percentage having a very difficult time June 2021 — 10% Percentage having a very difficult time May 2022 — 25% Percentage of change since 2021 — 150%
8. Maine Percentage having a very difficult time June 2021 — 6% Percentage having a very difficult time May 2022 — 15% Percentage of change since 2021 — 144%
9. Montana Percentage having a very difficult time June 2021 — 5% Percentage having a very difficult time May 2022 — 12% Percentage of change since 2021 — 143%
10. Idaho Percentage having a very difficult time June 2021 — 5% Percentage having a very difficult time May 2022 — 12% Percentage of change since 2021 — 140%
The rest of the PIA Western Alliance states in order of percentage of stress:
Oregon Percentage having a very difficult time June 2021 — 5% Percentage having a very difficult time May 2022 — 11% Percentage of change since 2021 — 129%
Nevada Percentage having a very difficult time June 2021 — 9% Percentage having a very difficult time May 2022 — 17% Percentage of change since 2021 — 92%
New Mexico Percentage having a very difficult time June 2021 — 9% Percentage having a very difficult time May 2022 — 16% Percentage of change since 2021 — 80%
California Percentage having a very difficult time June 2021 — 9% Percentage having a very difficult time May 2022 — 15% Percentage of change since 2021 — 63%
Arizona Percentage having a very difficult time June 2021 — 8% Percentage having a very difficult time May 2022 — 13% Percentage of change since 2021 — 61%
Alaska Percentage having a very difficult time June 2021 — 11% Percentage having a very difficult time May 2022 — 14% Percentage of change since 2021 — 27%
Source link: https://bit.ly/3M2hPJF Source link: PropertyCasualty360.com — https://bit.ly/3x1DP1U |
About PIA Western Alliance
The Professional Insurance Agents Western Alliance is a membership organization promoting and enhancing the success of independent agencies seeking to grow, learn and be heard within the industry.
PIA WESTERN ALLIANCE VALUES OUR STERLING PARTNERS
