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Insurance price increases in "Soft market"


gaf63
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If this is a soft market, I surely would not like to see the results of a hard market in the costs for my personal insurance.

State Farm raised my H.O. (3 yr. old house) by 18% at end of Sept, as well an increase in EQ ins from the state.  Just now received an increase in personal liability policy of 13.3%.  Have had no claims for as long as I can remember.

Anyone else experience such price hikes?  Or can it be that State Farm is trying to make up for bad investments from the last couple of yrs.  GAF

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I have lots of anecdotal evidence that State Farm is off the charts in terms of premium raises.  Multiple stories of 20-30% increases.  My brother just canceled his two car + house policy with SF after 10+ years... when the agent asked why, he said "COST" and the agent didn't even say anything... just took it like they'd been hearing that for the last several months.

 

I don't know the specifics, but they must have really lost a bundle in their investments or something, because while I see some hardening, I don't see anybody as crazy as them.  I know their structure is different, so maybe they are just being more honest about where they need to write business and most other firms are hiding it and trying to make it up with a few low accident years.

 

Shah, you reading, I know you're not in this space, but would like your thoughts.

 

Ben

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Just another data point from SF car insurance over the last six months.

 

my premium is down 5%

 

Notables:

+ "premium reductions" down 5%

+ comprehensive dropped 10%

+ collision dropped 19%

+ uninsured motor bodily increased 30%!

 

My current premium shows a decent delta compared to the last one...pricing is moving.

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They lost 2.2 billion last year just from writing insurance and looks like they took some heavy losses on their equity portfolio.  Wouldn't be surprised if they were like many deer in the headlights insurance co's that sold out of "risky assets" and went heavy into short term bonds before the run up.

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I'm with a smaller particpating co. for home and auto.

The rates were always lower than anything else I had quoted.

I recvd partic. cheques almost every year.

 

this year (with no claims or accidents for my auto) my rates increased 20+% :o

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