Catastrophe losses in 2011 caused the U.S. property and casualty
insurance industry to experience its worst losses since 2002, and
analysts say 2012 should only see modest improvement. A.M.Best, the
industry rating agency, reported the industry experienced more than $44
billion in catastrophe losses, driving down net income.
Simply stated, a greater frequency and severity of storms create higher
premiums, regardless of whether or not you have had a claim.
“We are in the midst of a very long-term trend. Whatever the underlying
causes are, this is pushing up the cost of providing insurance in many
parts of the country. Insurers have begun to reflect that in their
rates,” said Robert Hartwig, chief economist and president of the
Insurance Information Institute.
The Buckeye State ranks 6th lowest in the United States based on its
average homeowners insurance premium. Even with the increase looming,
the cost of coverage remains considerably lower in Ohio than in most
other states.
