According to a recent Wall Street Journal article, Property Casualty and Liability Insurance rates are on the rise. Rates in 2019 were up 6.7% on average after several years of flat or declining rates. There are several causes given for these increases:
- Two major insurance companies pulling out of those lines
- A rise in catastrophic claims over the past few years from hurricanes, wildfires and floods
- Higher non-catastrophic claims
- Increased liability claims due to a greater tendency to sue the insurer along with higher jury awards
- Insurers’ profits being squeezed by lower interest rates
While these increases are not “catastrophic,” they are being felt by both landlords and businesses as their costs are increasing. We will continue to monitor this trend and its impact on our industry.
This article appeared in our company newsletter in June of 2020. Please click here to download the entire newsletter.