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2011 Natural Disasters: Rate Increases on the Horizon

By: Lisa Parry Becker February 11, 2012

According to the Insurance Information Institute, 2011 was a record year for insurance industry catastrophe losses.  In the US alone, more than $35 billion were paid for natural disaster insurance claims.  By comparison, between 2000 and 2010, the average loss payout was $23.8 billion. 

NATURAL DISASTER LOSSES IN THE UNITED STATES, 2011
 
 NATURAL DISASTER LOSSES IN THE UNITED STATES, 2011

Source: © 2012 Munich Re. NatCatSERVICE.

Due to the natural disasters that occurred in 2011, and the unprecedented amount of claims that were paid, we are beginning to see rates increases from our insurance carriers.  We understand no one enjoys rate increases.  However, for the insurance companies to provide their services, and payout when claims occur, the rates need to be adequate.

Our own 2011 local disasters in Bucks County included the following events:

  • August 23, 2011      Earthquake
  • August 28, 2011      Hurricane Irene
  • September 8, 2011 Tropical Storm Lee
  • October 29, 2011    Pre-Winter Snow and Ice Storm

This was a two-month time frame in our agency that we hope never to repeat.  The staggering number of claims we handled for our clients was beyond compare.  Thank goodness for our wonderful staff who were empathetic and assisted our clients through the claims process.  Our carriers deployed extra claims adjusters and had extra claims staff manning the phones to take our claim reports.  This enabled all of us to work with you through the recovery process.  This was truly a team effort to service this unprecedented volume of claims. 

As an independent agency, we represent multiple carriers.  We are working hard to reprice your coverages among the carriers we represent when there is an excessive increase at renewal.  Please call us at 215-579-7310 so we may address any concerns you may have.

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