With the New Year ahead, it’s a good time to glance in the rear-view mirror and consider what businesses and individuals have faced this year from an insurance point of view, as well as what one may face in the coming year. We’ve taken time in the past few months to review items like various homeowner endorsements, flood insurance, and the impact high-tech autos have on insurance rates. We are also acutely aware, due to the large number of collisions and auto accident deaths resulting from smartphone use, both personal and commercial auto insurance rates are rising. However, while all of these topics are critical, today we want to assess how 2017 catastrophes and challenges impact commercial coverage rates for 2018.
2017 United States catastrophes
The United States and its territories saw more than its fair share of natural disasters in 2017. Most of our readers likely have at least one family member or close friend who was impacted by a hurricane, forest fire, flood, winter storms, thunderstorms, or tornado. The United States was not alone. As of December 20, 2017, Swiss Re announced that global disasters in 2017 reached $306 billion in economic losses. The 2017 U.S. catastrophes include:
- Multiple California wildfires, including the various fires in Napa and Sonoma County and the December 2017 wildfires beginning with the Thomas Fire in Ventura County
- Idaho Wildfires
- Montana Wildfires
- Oregon and Washington wildfires
- California flooding
- Hurricanes Harvey, Irma, Maria, and Nate (Tennessee and Kentucky suffered from Harvey’s residual rain and flooding)
Challenges affecting commercial coverage rates
As the disasters unfolded, we began to monitor news items regarding such catastrophes and the challenges highlighted in dealing with insurance coverage and rates, particularly as it applies to commercial businesses. In service to our readers, we are providing links to various articles. By perusing these articles, one can quickly discern the fluidity of the challenges presented to insurance actuaries or risk managers.
- Insurance Information Institute (III): Spotlight on: Catastrophes – Insurance Issues September 19, 2017
- Business Insurance: Commercial Insurance Prices Increase November 2, 2017
- Property Casualty 360: Commercial Insurance Rates Could Change Following 2017 Hurricane Season, Willis says November 6, 2017
- Insurance Journal: Commercial Insurance Rate Decreases Slowing Globally, Marsh November 22, 2017
- Business Insurance: Most Commercial Insurance Rates Rise in November December 5, 2017
- Business Insurance: California’s October Wildfire Claims Top $9.4 Billion December 6, 2017
- Business Insurance: Commercial Insurance Rates Steady December 11, 2017
- Business Insurance: California Wildfires Pose Challenges to Insurers December 21, 2017
Looking forward to 2018
If you are a business owner and would like to review your current business insurance package, we invite you to call us, email us, or complete our online form. For more than seven decades the John Bailey Insurance Agency has practiced the principles of integrity and care. We now insure businesses in over 20 states and continue to follow our Mission Statement: We solve problems, provide protection, and generate opportunities for our clients by creating insurance solutions.