Inflation in your World

#326
#326
Velo Vol said:
Just renewing, and this checks out.

Click to expand...

I recently did this, too. Both real estate and vehicles. Here's the dealio.
The dollar has less value which means the cost of everything increases. Insuring those higher value items costs more because the insurance company is replacing/fixing with dollar purchased goods and services.

My real estate insurance rates were set to increase about 50%. I increased deductible which offset but it was still quite a jump. Similar for my auto but not as big a jump.
 
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#327
#327
McDad said:
I recently did this, too. Both real estate and vehicles. Here's the dealio.
The dollar has less value which means the cost of everything increases. Insuring those higher value items costs more because the insurance company is replacing/fixing with dollar purchased goods and services.

My real estate insurance rates were set to increase about 50%. I increased deductible which offset but it was still quite a jump. Similar for my auto but not as big a jump.
Click to expand...
There are a number of factors. One thing specific to auto is I think that it's gotten more expensive to hire people to fix cars. Labor and parts shortages, etc.
 
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#328
#328
Between auto, property and GL our last renewal was touching 1/2 million. Pretty sure this year it’s gonna be a whole lot more so we’re looking at a captive.
 
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#329
#329
Curious about the insurance and it is true, I am wondering if a part of that is the nation having to pay for all the insurance damages from riots (such as 2020 BLM) to stores, etc. and the constant crime. The Insurance Companies have to make their money back somewhere.

Definitely think that a lot has to do with the National Debt and you can think W Bush, Obama, Trump, AND Biden all equally for that.
 
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#331
#331
Velo Vol said:
There are a number of factors. One thing specific to auto is I think that it's gotten more expensive to hire people to fix cars. Labor and parts shortages, etc.
Click to expand...
There are many factors but all have the common denominator of cost. Labor for my property renovations are almost 2x higher than 5 years ago. Home products are more expensive, too.

So, body shops should be similar. Labor costs more, supplies costs more, replacing a totaled vehicle costs a lot more.
 
#332
#332
volbound1700 said:
Curious about the insurance and it is true, I am wondering if a part of that is the nation having to pay for all the insurance damages from riots (such as 2020 BLM) to stores, etc. and the constant crime. The Insurance Companies have to make their money back somewhere.

Definitely think that a lot has to do with the National Debt and you can think W Bush, Obama, Trump, AND Biden all equally for that.
Click to expand...

Yes that is most certainly a part of it.
 
#333
#333
volbound1700 said:
Curious about the insurance and it is true, I am wondering if a part of that is the nation having to pay for all the insurance damages from riots (such as 2020 BLM) to stores, etc. and the constant crime. The Insurance Companies have to make their money back somewhere.

Definitely think that a lot has to do with the National Debt and you can think W Bush, Obama, Trump, AND Biden all equally for that.
Click to expand...
I am paying for terrorist coverage on my home property related to 2001.
 
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#336
#336
McDad said:
I recently did this, too. Both real estate and vehicles. Here's the dealio.
The dollar has less value which means the cost of everything increases. Insuring those higher value items costs more because the insurance company is replacing/fixing with dollar purchased goods and services.

My real estate insurance rates were set to increase about 50%. I increased deductible which offset but it was still quite a jump. Similar for my auto but not as big a jump.
Click to expand...
my auto rates went up huge with Progressive, so I finally dumped them for Farmers for much lower rate. Well guess what, the rate for Farmer's jumped significantly for me this renewal period because inflation.
 
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#337
#337
theFallGuy said:
my auto rates went up huge with Progressive, so I finally dumped them for Farmers for much lower rate. Well guess what, the rate for Farmer's jumped significantly for me this renewal period because "inflation".
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our economy is built on modest, consistent inflation. And, it is almost imperceptible when it is like that. The huge increases in the last 2 or 3 years have been impossible to go unnoticed.

Wages will increase. They always do. They just lag behind with dramatic inflationary periods.
 
#342
#342
ClearwaterVol said:
Yes, they are. I try cases for a living. Medical costs are the biggest component driving awards that have any effect on auto insurance.
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Sorry, that’s incorrect. Litigation financing, social inflation and more are what’s driving up awards. It’s not medical costs at all. I won’t say that has no effect as it obviously does but if it were just med costs then awards would be up 15-20% or so, not what we’re seeing.
 
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#344
#344
hog88 said:
Between auto, property and GL our last renewal was touching 1/2 million. Pretty sure this year it’s gonna be a whole lot more so we’re looking at a captive.
Click to expand...
Be careful there. Captives aren’t an insurance replacement. I assume you’re talking about a group captive though as forming your own won’t make sense at that premium level. You might be better looking at a deductible plan with a standard carrier but a whole lot of factors go into what makes the most sense for your business so a group captive could work but a deductible or SIR might be better, it just depends. Hopefully you have someone you trust that can help you review options.
 
#345
#345
hog88 said:
Between auto, property and GL our last renewal was touching 1/2 million. Pretty sure this year it’s gonna be a whole lot more so we’re looking at a captive.
Click to expand...


Industry is a mess. Companies like Erie offered guarantee replacement cost prior to home prices spiking and got stuck on the hook for RCVs that were double the coverage A. Same happened in comm but and then auto loss ratios went through the roof and theft spiked too. Perfect storm. Trade combined ratios are so far out of wack the reinsurers are requiring the carriers to get everything in line or lose reinsurance.


Whole industry is a mess right now and the actuaries are completely lost which is scary as F. People on the outside have no idea how close to a crash we are.
 
#346
#346
hUTch2002 said:
Be careful there. Captives aren’t an insurance replacement. I assume you’re talking about a group captive though as forming your own won’t make sense at that premium level. You might be better looking at a deductible plan with a standard carrier but a whole lot of factors go into what makes the most sense for your business so a group captive could work but a deductible or SIR might be better, it just depends. Hopefully you have someone you trust that can help you review options.
Click to expand...


Think he means captive like State Farm or shelter but most captives suck as GL for most Sics.
 
#347
#347
DC_Vol said:
Dumb move to flood the economy with money while everything shut down.

Even dumber was Fauci and company helping the Chinese create a super virus.
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Fauci wasn't dumb. He was pure evil. He needs to be hanged on PPV with a piano wire.
 
#349
#349
hUTch2002 said:
Be careful there. Captives aren’t an insurance replacement. I assume you’re talking about a group captive though as forming your own won’t make sense at that premium level. You might be better looking at a deductible plan with a standard carrier but a whole lot of factors go into what makes the most sense for your business so a group captive could work but a deductible or SIR might be better, it just depends. Hopefully you have someone you trust that can help you review options.
Click to expand...

Yes a non homogeneous group captive.
 
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#350
#350
NEO said:
Industry is a mess. Companies like Erie offered guarantee replacement cost prior to home prices spiking and got stuck on the hook for RCVs that were double the coverage A. Same happened in comm but and then auto loss ratios went through the roof and theft spiked too. Perfect storm. Trade combined ratios are so far out of wack the reinsurers are requiring the carriers to get everything in line or lose reinsurance.


Whole industry is a mess right now and the actuaries are completely lost which is scary as F. People on the outside have no idea how close to a crash we are.
Click to expand...

An insurance industry crash would not surprise me in the least. It’s getting unsustainable
 
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