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  • Staff Contact: Brooke Kelley-Hunt     
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Contact:

Brooke Kelley-Hunt

Phone:

847-894-3881

Email:

Brooke.kelley-hunt@pciaa.net

 

 

FOR RELEASE ON RECEIPT

January 23, 2014

North Carolina Rate Increase Necessary to Keep up With High Number of Claims

 

RALEIGH N.C. – While increasing homeowners’ insurance rates is never popular, the large number of weather-related events in North Carolina along with other rising costs make it necessary, according to the Property Casualty Insurers Association of America (PCI).

North Carolinians are not strangers to severe weather. More severe windstorms occurred here than in any other state from 2011 to 2012. Industry data shows that homeowners insurance loss costs, losses per insured housing unit, in North Carolina rose 35 percent from 2008-2012 largely due to the constant rash of severe weather. The attached graphic demonstrates that severe weather is not just a coastal phenomenon, since tornadoes, hail storms and other types of weather events take place all over the state. The predominant weather event in 2012 was wind, followed by hail according to the National Weather Service (NOAA).

“Whether it is after a major weather event, home fire or a theft, insurance companies are there to meet their customers’ needs, pay out the claims and help homeowners rebuild,” said PCI’s Regional Counsel Oyango Snell. “While increases are unpopular, insurance companies are trying to keep up with the high number of wind claims, rising costs and rates that have been suppressed for some time now. Prior to the last filing six months ago, there have not been any increases in homeowners’ insurance rates since 2008. With the rise in the number of weather-related events and other costs, insurers must be able to stay viable in order to protect consumers and promote competition in the marketplace. But in the end, it’s about keeping a promise to the consumer – the promise to be there to help rebuild when the dust settles.”

PCI is composed of more than 1,000 member companies, representing the broadest cross-section of insurers of any national trade association. PCI members write over $195 billion in annual premium, 39 percent of the nation’s property casualty insurance. Member companies write 46 percent of the U.S. automobile insurance market, 32 percent of the homeowners market, 37 percent of the commercial property and liability market, and 41 percent of the private workers compensation market.

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