Statistics & the Homeowners Insurance Crisis

Two weeks ago the Council of Insurance Agents & Brokers (CIAB) held its annual Insurance Leadership Forum in Colorado Springs, Colorado. Insurers there talked about the need to get significant rate increases over the next few months.

Two lines of insurance are the most impacted. They are auto and homeowners. Catastrophe losses and liability awards from court cases are driving those sometimes staggering increases.

The bottom-line is how insurers are having to do significant increases in rates, and it doesn’t look like things are going to get better anytime soon. The details of the forum’s meetings are worth checking out.

A recent S&P Global Market Intelligence RateWatch looked deeply at homeowners insurance rates and how they’ve been climbing considerably the last few years. The report looked at different insurance companies and how much their rates jumped between 2018 and September 1st of this year.

“Macroeconomic conditions continue to plague US personal lines-focused insurers as the past two years have seen a higher-than-average rise in homeowners’ insurance rates,” S&P’s report said. “Between 2018 and 2021, the countrywide yearly average change was in the 3% range but jumped to about 6% in 2022. Through roughly the first eight months of 2023, the national average rise in homeowners’ premium rates was 8.8%.”

As an example of how tough things are getting, Farmers is looking at rate hikes of over 10% in 28 of the 43 states that have approved its next set of rate increases. Illinois is going to see an 25.3% hike on average and Texans will experience an average jump of 25.1%.

People in Tennessee with Farmers Insurance are going to average increases of 23.8%.

These are the top-10 homeowner insurers and the percentage of increase from 2018 to now:

1. State Farm

2022 to 2023: 8.9%

2018 to 2023: 12.1%

2. Allstate

2022 to 2023: 13.4%

2018 to 2023: 30.1%

3. Liberty Mutual

2022 to 2023: 21.3%

2018 to 2023: 33.7%


2022 to 2023: 18.6%

2018 to 2023: 34.7%

5. Farmers

2022 to 2023: 30.1%

2018 to 2023: 48.7%

6. Travelers

2022 to 2023: 15.5%

2018 to 2023: 36.8%

7. American Family Insurance

2022 to 2023: 16.2%

2018 to 2023: 41.7%

8. Nationwide

2022 to 2023: 15.6%

2018 to 2023: 36.2%

9. Chubb

2022 to 2023:11.3%

2018 to 2023: 41.8%

10. Progressive

2022 to 2023: 11.7%

2018 to 2023: 52.8%

Source link: Insurance Journal —

Source link: Business Insurance —

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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.


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