Made an insurance claim?

More people are making insurance claims

In the past there were less personal lines claims. Personal lines includes, but is not limited to, home, automobile, trailer, watercraft, and motorcycle. Prior to 2009 if you suffered a small claim then it was likely that you would seriously consider paying the claim yourself. This has changed due to our recent changes in the economy.

There has also been a rise in the number of lawsuits for third-party (at fault or negligent) losses for business. Personal automobile litigation also is on the rise. This does tie in with the insurance company's defense on doing credit checks. The belief is that the more financially stable a person is then the less likely to have claims.

A survey was done 52% of the claims officers surveyed reported an increase in frequency of homeowner claims. there was an increase reported by 42% for personal automobile claims.

From the viewpoint of Risk Management we see personal lines with increased frequency and severity. Of the claims officers surveyed 34% reported an increase to the severity of homeowner claims. The severity of personal automobile claims was noted by 22% of those surveyed.

The insurance companies all saw increased claims in the personal lines segment. The business insurance claims were not as frequent nor as severe.

Expect prices to be going up. When the insurance companies pay out more then they are going to either restrict coverage and/or charge more premium. Make sure you talk to your broker to be sure that you are getting the insurance you need and with some control over increased costs.