Farm Insurance Policies

WHAT IS DRIVING THE INCREASE IN INSURANCE RATES?

FACTORS IMPACTING ALL INSURANCE

• Inflation: The Consumer Price Index (CPI) has risen more than 7.1 percent since November. That means we're all spending more for the same goods and services than we were a year ago. Those higher prices are the main driver for rising insurance costs.

• Labor Shortages: Labor market pressures have driven repair costs up even more with fewer available workers, extending timeframes for getting work done.

FACTORS IMPACTING VEHICLE INSURANCE

• Vehicle Prices: Prices for new and used vehicles remain high, due to supply chain woes and a focus on pricey models and features. Plus, top-of-the-line 2021 models are now today's used cars.

• Repair Costs: Continued supply chain issues, pricier parts and labor market pressures have driven up repair costs.

• Pricier Parts: Cameras and sensors keep us safe, but cost more to replace if damaged. Some common vehicles have 30+ pieces of tech not present on older models.

FACTORS IMPACTING HOME AND COMMERCIAL INSURANCE

• Building Materials: Inflation is even higher when it comes to many of the materials commonly required for construction and repair. Building material costs increased 16.6% annually as of Q4, 2022.

• Extreme Weather: Major destructive weather events such as hurricanes and wildfires are on the rise. This leads to trends where claims are both more frequent and more expensive.