At UNICO Group, we understand the significant impact that higher insurance premiums are having on you and your family.
In 2022, hurricanes, floods, tornadoes, wildfires, and blizzards continued to strain the industry at an alarming rate. Already in 2023, there have been more extreme events in America that cost at least $1 billion, exceeding the 2020 record. Catastrophes, the mounting costs of building materials and four other driving forces are increasing the cost of property insurance.
Catastrophic Losses
Over the past five years in the United States, 89 events have generated losses of more than $1 billion each.
Property Replacement Costs
Over the past three years, the cost of structural steel increased by 55% and the price of lumber increased by 35%.
Reinsurance
In early 2023, the gap between reinsurance supply and demand was estimated at $60 billion, three times what it was the previous fall.
Skilled Labor Shortage
The Associated General Contractors of America found that nine out of 10 contractors are struggling to find skilled labor and are delaying projects as a result.
What’s Driving Higher Auto Insurance Costs?
Ongoing supply chain issues are driving a shortage of car parts and equipment, which were 22.3% more expensive at the end of 2022 than they were two years earlier. The overall cost of maintaining and repairing vehicles increased 18.4 % over the same timeframe – exacerbated by a growing shortage of car repair technicians.
The same issues depleted the supply of new and used cars during the COVID-19 pandemic, and inventories have not yet recovered. As a result, the average price of new cars has risen 20% since 2020, while used car prices have skyrocketed 37%. Rising medical costs are another key factor. While the number of injuries and fatalities from car accidents has somewhat declined from its peak in 2021, the rising cost of medical care continues to drive higher claims costs. Between 2020 and 2022, the overall cost of medical care in the U.S. increased 6.8%.
As your Personal Risk Advisor, our primary goal is to ensure that you have the right insurance coverage for your needs while staying within your budget. To achieve this, we constantly monitor market conditions and keep in close contact with insurance carriers to remain up-to-date on any changes in pricing or coverage terms and conditions.
