Property and liability insurers are driving up prices for US businesses: “And they have warned price hikes are likely to continue,” according to the 21 Hats Morning Report . “The turnabout underscores a challenging landscape for US insurers following several years of large catastrophe losses and continued low interest rates, which have weighed on their investment returns.”
“Texas Roadhouse was hit with price increases of more than 20 percent for some of its coverage. ‘This is the first year we’ve seen where it really didn’t matter what your loss history was,’ said Patrick Sterling, who oversees risk management for the restaurant chain. ‘You’ve had no losses? You’re still seeing the increases. And that certainly creates some frustration.’”
“The Children’s Shelter, a nonprofit in San Antonio that works with foster children and children who have been abused, expected its insurance costs this year to rise from last year’s $176,000 because the organization grew. But when it received a renewal quote of $750,000, ‘my mouth hit the ground,’ Chief Executive Annette Rodriguez said.”
“In recent months, insurers have cited ‘social inflation’ as a cause of increased liability-insurance claims. Industry executives say there is a greater tendency to sue insurers and for juries to hand out higher awards.”
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