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I thought insurance rates were also rising because of increased rates of natural disasters, but this just adds more pressure to it.

jibe 3y ago
The rate of natural disasters isn’t going up, the cost of natural disasters going up. It is because they are affecting more densely populated areas. And the structures that are damaged cost more to fix/replace. E.g., https://www.nhc.noaa.gov/pastdec.shtml https://www.nhc.noaa.gov/pastdec.shtml
- deleted 3y ago
  [deleted]
CamperBob2 3y ago
I don't get the impression that natural disasters are becoming more frequent, necessarily, or even more severe. But rebuilding is becoming much more expensive, for the same reasons it's become so expensive to build anything in the first place.
- duderoso 3y ago
  Southern coast has seen an excessive amount of hurricane damage over the past five years. Check florida and gulf coast state insurance rates recently.
  - CamperBob2 3y ago
    Again, the point is that you can't just compare $X billion over the past N years with $Y billion during a different N-year period. The numbers have gone up dramatically even if the actual damage didn't.
duderoso 3y ago
If i insure my house for 200k, i get 200k whether it costs 200k or 400k to rebuild it. My home insurance has doubled from 2022 to 2024 for the same level of insurance. And the value of my house crrtainly hasn’t doubled. I expect some increase year to year but that is excessive. Inflation is expected but a lot of companies are also taking advantage of the rise in prices and using excuses that no longer apply. Companies aren’t willingly going to go back to reasonable prices if people are still willing to pay higher ones or if customers are locked in. Check out Pepsis earnings call a few quarters back. Basically “we raised prices bc we can and our margins have increased”. Its just capitalism. Supply chain shock is over.

jibe 3y ago

The rate of natural disasters isn’t going up, the cost of natural disasters going up. It is because they are affecting more densely populated areas. And the structures that are damaged cost more to fix/replace. E.g., https://www.nhc.noaa.gov/pastdec.shtml https://www.nhc.noaa.gov/pastdec.shtml

deleted 3y ago
[deleted]

CamperBob2 3y ago

I don't get the impression that natural disasters are becoming more frequent, necessarily, or even more severe. But rebuilding is becoming much more expensive, for the same reasons it's become so expensive to build anything in the first place.

duderoso 3y ago
Southern coast has seen an excessive amount of hurricane damage over the past five years. Check florida and gulf coast state insurance rates recently.
- CamperBob2 3y ago
  Again, the point is that you can't just compare $X billion over the past N years with $Y billion during a different N-year period. The numbers have gone up dramatically even if the actual damage didn't.

duderoso 3y ago

If i insure my house for 200k, i get 200k whether it costs 200k or 400k to rebuild it. My home insurance has doubled from 2022 to 2024 for the same level of insurance. And the value of my house crrtainly hasn’t doubled. I expect some increase year to year but that is excessive. Inflation is expected but a lot of companies are also taking advantage of the rise in prices and using excuses that no longer apply. Companies aren’t willingly going to go back to reasonable prices if people are still willing to pay higher ones or if customers are locked in. Check out Pepsis earnings call a few quarters back. Basically “we raised prices bc we can and our margins have increased”. Its just capitalism. Supply chain shock is over.