Six Things 10.24.23
Insurance Thought Leadership
Transforming the Insurance Industry - Welcome to the Conversation
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The Insurance Industry's PR Crisis
Paul Carroll, Editor-in-Chief of ITL
The headline in Business Insider couldn't be starker: "Insurance Companies Have Discovered Devious New Ways to Rip You Off." And I think it should be a call to action.
People in the industry understand the need to sharply raise rates for auto and homeowners insurance. Replacement costs are way up, climbing far faster even than the lofty inflation rates of the past two years. The addition of sophisticated electronics in cars and the transition to electric vehicles increase repair costs, too. Frequency of claims is up, as well, and will likely keep increasing, especially for homeowners, as the warming climate causes more and bigger storms and wildfires.?
As costs rise, premiums have to, too. Insurance is a business, not a hobby.
But consumers aren't in the industry and aren't exactly sympathetic to insurers' problems. They just see rates soaring, and they're angry. They will now generate as much pressure as they can on state regulators -- whom they elect, either directly or indirectly -- and we can expect to see a lot more headlines about "devious" insurers.
What to do?
While nothing will eliminate the problem, I think we can take at least some of the sting out of it by doing three things.
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