The PIA recently did a survey of independent insurance agencies in the Northeast. This survey showed significant market changes in Homeowners and Commercial Insurance policies. Knowing what changes are coming can help you make an educated decision regarding your insurance.
Homeowners
The association said 95 percent of members responding in the survey indicated new business price hikes for the homeowners insurance, with nearly half reporting increases in the range of 6 to 10 percent. Additionally, 45 percent of the responses reported a significant or extreme change in the underwriting approaches to homeowner policies. The association said this is a direct result of the recent changes in the market, including the result of Superstorm Sandy. Approximately 45 percent of respondents reported a moderate to extreme increase in nonrenewals — with even more dramatic changes for businesses in coastal areas.
Personal Auto
The PIA said personal auto appears to have been least affected by the shifting market. The PIA survey respondents described an average price hike of 0 to 5 percent on new business, with 8 percent of respondents indicating price decreases. Approximately half of the respondents said underwriting changes are minor or have stayed the same. Some 71 percent of the respondents saw no change or minor increases in the frequency of nonrenewals.
Commercial Property
The PIA survey found that commercial property, like homeowners, appears to be suffering a significant impact from the shifting market. The association said 96 percent of respondents reported pricing hikes on new business, while 97 percent reported price increases on renewals. More than 50 percent of the respondents said the most frequent price hikes were in the range of 6 to 10 percent, with additional 21 percent seeing price hikes in the 11-to-15 percent range. About 30 percent reported they are seeing significant or extreme shifts in underwriting guidelines, though little changes were reported in the nonrenewal activity.
Commercial Liability
The survey found that commercial liability appears to be less affected by the market change. The respondents said they are seeing, on average, a price increase range of 6 to 10 percent. More than 60 percent of the respondents said they saw little to no change in nonrenewals, with minor changes in underwriting guidelines.
Questions regarding your insurance policies? Give us a call and we’ll be happy to go over them with you. 860-684-2721.
Penny Hanley & Howley Insurance
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