The Wall Street Journal (re-posted on Realtor.com) is reporting that home insurers are pushing for big rate increases along with weakened consumer protections. In addition, the WSJ says they are increasingly getting what they ask for. According to their report, state regulators across the country appear to be adhering to industry demands, fearing that insurers will exit their states.
States are also giving home insurers almost everything they ask for on rates, an analysis conducted for The Wall Street Journal suggests. The average state-approved increase since the start of last year is just 0.2 percentage point below the increase requested by the industry, according to the analysis by S&P Global Market Intelligence.
“The industry is definitely playing hardball at the moment,” Colorado Insurance Commissioner Michael Conway said. “They’re doing that because they’re scared [of forecast extreme-weather losses].”
Many state regulators are in a weak position to push back on industry demands. “The [state home-insurance]markets are incredibly unstable right now,” Conway said.
Click here to read the full story at Realtor.com.
Click here to read the full story at the Wall Street Journal. (subscription required).
