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Personal Insurance Market Trends 2019: How Evolving Risks Impact Your Insurance Program

oswaldcompanies November 12, 2019

If you have recently reviewed your insurance renewal policies, you may be one of many asking yourself, ‘why did my premium go up so much this year?’

Several trends have impacted home, auto and liability premiums, including weather and non-weather related losses (water), increased costs of technology in homes and automobiles, and rising costs for repair and reconstruction on homes. The following are important facts to consider:

  • Storms and other natural events have increased 100% in the last 17 years, both in frequency and severity (1)
  • Water damage has been on the rise, and homes 16-40 years are most at risk (2)
  • The cost of water and fire damage claims has increased 9% in the past 12 months (2)
  • New technologies in the home have increased replacement costs >100% (3)
  • Reconstruction costs are up by as much as 7% in just a 12 month period, due to both a shortage in skilled labor and cost of materials (3)

To this end, we are sharing a valuable piece, “Market Trends and 2019 Opportunities,” provided by our partner, Chubb Insurance. The information discusses evolving exposures and risks and their impact on the property marketplace.

There are stories of people throughout the county who do not have adequate coverage, experienced a shortfall during a repair, or worse yet, when they had to rebuild. Scenarios like those described above could place your financial portfolio at risk. Your personal risk advisor team at Oswald Companies knows you have questions, and are here to proactively educate and provide you with peace of mind that your insurance program is soundly protecting your assets.

Frequently Asked Questions:

Do the major catastrophic events in other parts of the country impact my premium (hurricane and wildfire)?  

No, the insurance carriers set premiums for the loss experience occurring in each state (and all rates must be approved by state regulators). Therefore, homeowner clients in Ohio will not be impacted by, for example, California wildfires. However, it is very important to note that, in the Midwest, the occurrence of ‘convective’ storms, storms producing wind, hail, cold/ice and tornado events, have been on the rise since 2001, from 5% to up to 80% (in 2017).

What can I do, proactively, to manage my insurance coverage and premium?

  • Consider carrying higher deductibles on your property coverage.   Most homeowner carriers track loss frequency and surcharge for losses. Changing the way you use your insurance coverage (by absorbing a larger portion of the loss) will not only minimize a potential premium surcharge, the increased deducible will result in a premium credit
  • If you experience a small loss, call us to for guidance on the potential ramifications of filing the claim
  • Portfolio or ‘bundling’ discounts can provide additional savings.  If your auto, home, liability and valuables policies are not currently handled by the same insurance carrier, please contact us to discuss how this might help your situation
  • Consider opportunities to reduce your risk to property and contents, by installing loss mitigating devices (which provide premium credits), including:
    • Monitored security alarms
    • Water shut-off devices and/or sensors
    • Hardwired back-up generators
    • Jewelry stored in safety deposit box or bank vault

Please contact us if you have any questions.

(Material derived from “Market Trends and 2019 Opportunities, Client Questions” Chubb Insurance, Jan, 2019)


  • MunichRe NatCatSERVICE, April 2018
  • ISO Fast track YE June 2017 Results
  • US Bureau of Labor & Statistics, manufacturer websites and Verisk, 2018