Cox Insurance
A Better Way to Be Insured
A law going into effect July 1 shortens classes for first-time participants from eight hours to four, matching the same length of refresher courses that drivers seeking to keep their state-mandated 10% discount on their auto insurance premiums must take every three years.
For more information, check out this article “New law shortens defensive driving classes for seniors taking it for the first time” from the StarTribune.
The insurance industry has recently entered a period of “market hardening” which means:
As a result, insurance is more expensive and harder to obtain.
Undoubtedly you’ve experienced a rise in premiums or changes to coverages at your time of renewal. Let us help try to explain what is going on…
The increase in catastrophic weather events has put a huge strain on the insurance market.
U.S. 2023 Billion-Dollar Weather and Climate Disasters
In order to be financially viable, insurance carriers have had to reassess their client portfolios.
For more information on insurance and weather-related events, read the Wall Street Journal article that reports on “huge losses from national disasters prompt industry to jack up prices and pull back from some markets; ‘worst possible scenario’ for consumers.”
Supply-chain disruption, labor shortages, and costlier replacement parts are all contributing to current and future loss pressures.
Increased cost of materials for home and auto repairs along with weather-related catastrophes and other factors have forced the insurance industry to raise rates.
Inflation also plays a factor. Even though the media buzz around inflation has died down, many policyholders are still experiencing rate increases at the time of their renewal. This is partly because the insurance industry lags 12-18 months behind due to the lengthy process to declare, file, and implement rate changes in response to market conditions.
There are a multitude of other factors that are contributing to the perfect storm of insurance vulnerability, including:
Insurance companies are now dealing with client portfolios that are increasingly unprofitable and unsustainable. Market conditions have forced many carriers to take action to preserve their financial ratings.
Some things we’ve seen carriers do:
These changes have resulted in many challenges for the insured.
Every day we are working directly with clients to help them understand what is going on and work together to find the best solutions. With access to an array of carriers, we can advocate to get you the best coverage for the best value.
Regardless of market conditions, we will always be here for you! Please do not hesitate to set up a phone call with us to discuss your specific situation.
Cox Insurance, in partnership with Cyberfin, hosted a Cybersecurity Solutions webinar to educate business owners on the potential exposures due to cyber crimes. Preview the full webinar below.
Highlights from the presentation include:
If you have questions about cybersecurity or cyber liability insurance, contact Derek Gruber – [email protected].
Derek Gruber, Director of Business Insurance at Cox Insurance, joined IT and Security leaders Joe Malmberg and Jordon Darling of Top Dog PC Services to discuss the confusing world of Cyber Insurance. Together, they try to remove some of the mystery surrounding cyber insurance policies and look at how it fits into incident response planning.
Watch the video:
Like seemingly every corner of the world and most other industries, the insurance market has been impacted by the events of this past year.
Material prices are at an all time high, we have supply chain issues for vehicle parts, new safety protocols that have impacted human interactions at the time of a claim – just to name a few. Things cost more, take more time, and inevitably feel different. We miss the old days but are embracing the new!
While a lot in life was put on pause or certainly forced to slow down, the threat of a loss never takes a break.
We continue to see an uptick in both the frequency and severity of convective storms. This is having a major impact on our local homeowners market. At a national level, we have seen some huge catastrophes in the past couple of years—from severe weather in Texas and Florida to all the fire devastation in California. The Iowa Derocho just this past August was the costliest thunderstorm in U.S. history.
Weather events with a $1billion price tag have more than doubled this decade compared to last.
There is a tremendous amount of volatility in weather patterns creating uncertainty in the homeowners insurance market as it relates to coverage offerings and pricing outlook.
On top of this, the construction and real estate markets continue to boom at historic levels. According to the National Association of Home Builders, material prices are up 180% since this time last year. Have we hit the peak? When will it pop? Time will tell….
The auto market is an interesting study in its own right. While auto usage is down significantly due to the pandemic and remote work, the reality is that roads still present their own unique set of challenges. In our home state of Minnesota, even with less drivers on the road, we saw a 30% increase in fatal accidents in 2020. We’re on pace to exceed that already in 2021.
Another concern we continue to monitor are uninsured drivers. 1 in 8 drivers does not have insurance. Once you factor in drivers who are under-insured – 25% of the cars on the road don’t have sufficient coverage. This is fueled by easy to access online providers (i.e. the “name your price” and “15 minutes could save you” companies) and quite frankly a lack of reform at the state level to create minimum requirements that are more inline with today’s cost of living standards.
1 in 4 drivers likely does not have adequate insurance, creating a potentially dangerous situation for all drivers.
What is exciting are the advancements in car safety. All the buzz is around going fully autonomous, but the real difference makers are the advanced safety features (sensors, cameras, crash avoidance, etc) that your every day vehicle now has when you drive it off the lot.
The increase in safety features is matched by the increased cost to repair. A basic windshield replacement commonly used to be $400-$500. Today, by the time you get the glass with the sensors in it, install and calibrate it is a $1500 bill. The same logic applies to bumpers, headlamps, etc.
Overall though, auto insurance seems to be much more stable compared to its counterpart on the homeowners side. We anticipate a ton of disruption and innovation here in the next decade. We’re buckling up, pun intended, to push for positive change to a system that has moved at a snails pace for decades.
Insurance is not just a product, it’s a promise. It’s peace of mind. With change, new decisions are needed. Strategies tweaked. Plans get adjusted. We feel fortunate that we get to play a role in protecting the well being of our clients. In these uncertain times, it is more important than ever to have a well thought out plan. We think it is wise to invest in your future, by protecting it now. From our entire team, we thank you for the opportunity to serve you and to do this together.
At Cox Insurance, our number one priority is customer service. Never hesitate to contact your advisor if you have a question about your policy or want advice regarding a claim.
Authored by: Taylor Cox, President
Cox Insurance provides Home, Auto, Liability and Commercial insurance that exceeds expectations. For a personalized quote, please contact us here.
Due to recent hail storms, “storm-chasing” contractors are showing up in affected areas. The Star Tribune recently published an article with heads-up information about what to watch for when hiring a company to repair hail damage.
1. “We’re working with your neighbor!”
Storm-chasers win by being first.
2. They show up faster than humanly possible.
Storm-chasers insist that you need to get your roof fixed quickly.
3. They convey a sense of urgency.
Storm-chasers insist that you need to get your roof fixed quickly.
4. They’ll offer to nail down some tarps.
They’re not doing you any favors.
5. They want to put a sign in your yard before you’ve signed anything.
They’ll beg and plead to put a sign in your yard.
6. They’ll cover your deductible.
This is illegal, but it happens. Your contractor can’t reimburse you for your insurance deductible.
7. They want you to sign something on the first visit.
They’ll tell you it’s simply a permission slip to inspect your roof, but it’s not.
8. They want you to call your insurance company, now.
Again, this is about creating a sense of urgency and locking you in.
9. Bashing the competition.
Good local contractors know who their competition is, and they view them as colleagues, not enemies.
10. They won’t give you proof of the damage.
Good contractors will take pictures of storm damage and show it to you.
11. They’ll promise the world.
They’ll tell you they can get your insurance company to pay for new gutters, windows, siding, and all of that other stuff.
12. Their vehicle isn’t local.
Storm chasers won’t drive vehicles lettered up with local contractor information.
Reuben Saltzman. “Top 12 clues a storm-chaser is at your door” Star Tribune, https://www.startribune.com/top-12-clues-a-storm-chaser-is-at-your-door/572214302/. August 25, 2020.
Since 1950, Cox Insurance Associates has provided personal and commercial risk management services as an independent agency. The heart of our business is building genuine relationships with our clients and business partners. We work as a team toward collective goals, inspired by a commitment to provide an outstanding insurance experience.
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