Insurance will never look the same again.

I always blab on and on about how this industry is changing, but for me, I've been an insurance professional my entire career. I see these changes and they are so monumental and greatly warranted. It is hard as an agent to see this industry changing so quickly from climate change and the actual impact it has had on this industry. The carriers I have worked for in my career have been forecasting probabilities and tracking weather since the beginning of time for insurance. It is undeniable in this industry, and we've been feeling the effects for three decades on already. We rely on actuaries and science in this industry. For things like, helping the building industry to make better more storm-resistant building products to creating insurance products that cover more risk for the modern exposure. We are suffering more storm damage, more often, and that is resulting in larger payouts. The U.S. property/casualty (P/C) industry recorded a $26.5 billion net underwriting loss in 2022, $21.5 billion more than the $5 billion underwriting loss reported in 2021, according to a report published by AM Best. Personal lines losses and the impact of Hurricane Ian caused the industry’s combined ratio to deteriorate to 102.7 from 99.7 in 2021, the report said. (Combined ratios above 100% indicate an underwriting loss). This is why we are where we are, and prices are never going to look the same as they have in the past. As a former claims adjuster, now agent, I see both sides of this fence. This consumer product needs to remain affordable, or we have a whole new issue that would hurt the most vulnerable Americans. However, we need to understand that our use of insurance has to change. Filing that $250 glass claim takes money out of a shrinking pond of money to pay out other claims. The profit margin has been chipped away at for decade upon decade and clearly after the actual losses from just 2022 alone does not even exist. Insurance companies have to raise rate, must raise rate, for that reason. When would you really ever replace your own roof? I know people who know that roof needs replaced and has been worn out for five years and just wait for the next hailstorm to finally take it, so the insurance company pays. Insurance companies don't owe for wear and tear that's on you. Play decade after decade of millions up millions claiming worn out roofs, they just waited for a storm to come and take. That's taking advantage, that has cost the industry in the long run. Not to even mention all the fraudulent claim filings they have to deal with. The true cost of insurance should be triple what it is based on the abuse of the industry alone. As an agent I think they should strip down the coverage to the bare minimum past policies provided, but in a litigation hungry country we can't do that. So now the industry is using technology to their advantage to see the state of that roof before the storm. Advancements in that kind of technology will result in more claim denials on roofs that should hav been there all along. Since we are all paying into the same big pond to pay out all the claims in the country, we also hold some responsibility and be alert that as a consumer there is a cost for every single thing. If you've had two home losses in the last five years, well, that almost makes you uninsurable in the standard market. You've had 6 tow claims and an at fault accident in you may get non renewed. Get ticket 20mph over you get dropped from your carrier. These are the facts of the future. The cleaner your loss history, the better off you'll be. Insurance was originally meant for catastrophic loss, that's why we call our big storms catastrophes. But in America these days we can't afford to replace the cars we buy, not even the glass in the window, or the cost of a tow. That over time has driven claim expenses higher and higher because insureds rely on their insurance company for smaller losses that in the past people did not claim. Couple that with huge technology costs in parts for vehicles coupled with more accidents being reported than we've seen in decades and consistent increased storm damage it is an industry on the brink of huge movement and change. Be aware but be prepared as a consumer as well because pricing will only go up from here and someday policies may not look the way they do now. Pay attention to those little blogs and FB posts you see stay in touch with your agent. Be responsible with your use of insurance. Protect your good claim and driving history by driving better, reducing speeds, maintain your home, if something is worn out, replace it. Cross your own T's and dot your own I's so we can all continue to responsibly enjoy the benefit of insurance when we need it. We've grown to depend on it too much and expect to pay too little. I can't believe my rate conscious self just said that, but that is the truth. We can't keep blaming the big old insurance companies for the rising costs when they truly aren't the problem, they're the fixers. Heather