The year 2023 was a mixed bag in terms of the economy. While 2.7 million jobs were created in 2023, layoffs also affected many[1]. Inflation was also top of mind for many, and while it had cooled somewhat by the end of the year, it still remains above the Federal Reserve’s target[2].
One thing that worried many, especially in certain states, was how to afford insurance…and, in some cases getting a policy at all. With a new year looming, we wanted to check in on where we see the insurance crisis going in 2024. What is being done? Is there hope things are turning around?
Outlook for insurance crisis in 2024
Insurance rates are expected to rise in 2024. And we don’t anticipate significant weather events lessening any time soon. While inflation is cooling, it’s still not completely down yet, meaning cost of living and repairs remains high. All of these factors mean insurance companies are continuing to experience poor loss ratios and will need to increase rates to cover those losses.
So what about from the government and regulation side of things? As is the case with anything labeled a crisis, actions are being taken. Let’s look at some of the states most affected.
Wrapping up
If you live in an area where it’s hard to get insurance, it’s unlikely that 2024 will see an immediate turnaround. The weather and disaster factors contributing to the problem are unlikely to change for the better, but governments are working to try to find solutions to this new reality.
If you use The Zebra’s comparison engine to search for and compare insurance companies, and we aren’t able to find any at this time, we now offer an SMS feature so that we can reach out in the future when rates become available.
