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Insurify says Americans have seen premiums climb to
unsustainable heights, and Illinois is one of 15 states where
insurance storm clouds are appearing on the horizon. The company
said homeowners are facing rising costs and shrinking coverage
options, which put their financial stability at risk.
“When we look at Illinois we see a little bit of both
happening,” said data insights manager Chase Gardner. “It is not
to the extreme that we’ve seen in some major states, but if
trends continue, it could definitely get into some more serious
territory.”
Gardner notes that Illinois insurers have already pulled back,
with Pekin Insurance pausing new policy writing and SECURA
Insurance dropping policyholders, which is an early sign the
Illinois insurance market is hardening.
The report shows that Illinois experienced a significant rise in
claim-related expenses for insurers in 2023, largely due to the
frequency of severe weather events and increased restoration
costs.
Insurify’s data science team projects the average annual home
insurance premium in Illinois will hit $2,245 by the end of
2024, a 10% increase from 2023. The company projects Illinois
car insurance premiums will rise by 31% by the end of 2024,
bringing average annual costs to $2,181.
Other Midwestern states making Insurify’s insurance crisis list
include Iowa, Missouri, Minnesota and Michigan.
Although the state didn’t make the list, Florida’s insurance
debacle is making front page news. Since 1980, the U.S. has been
impacted by 378 weather events that have caused financial damage
of at least $1 billion. As a result, some Florida homeowners pay
some of the highest insurance premiums in the country.
"It's about $34 billion of bad,” broker Ryan Serhant tldo Fox
News. “It's one of the greatest insurance crises that we'll see,
I think, in a very, very long time." |
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