American Property Casualty Insurance Association: WHAT YOU CAN DO ABOUT THE COST OF INSURANCE WHEN EVERYTHING IS GETTING MORE EXPENSIVE

WASHINGTON, July 29, 2025 /PRNewswire/ --

BACKGROUND:
The cost of living has been rising for years and continues to go up. Increasing costs impact everyone and make it extremely challenging to run a small business, raise children, or support your aging parents. Insurance is no exception – the price of insurance is determined by the cost of everything else. This includes everything that goes into repairing and rebuilding homes and vehicles and even recovering from injuries. David A. Sampson, president, and CEO of the American Property Casualty Insurance Association (APCIA) breaks down why insurance costs are rising and what consumers can do to lower their premiums. He also shines a light on which states are taking the right steps toward lowering costs.

Experience the full interactive Multichannel News Release here: https://www.multivu.com/american-property-casualty-insurance-association/9300551-en-american-property-casualty-insurance-association-cost-of-insurance-everything-expensive

WHAT IS DRIVING UP OUR INSURANCE COSTS?

• Inflation hit the U.S. economy hard starting in 2021. Month to month, inflation remains elevated, even if it's slowed down quite a bit from the 40-year record high a few years ago. Insurance rates are a lagging indicator for inflation. The inflationary spike of 2021 to 2023 began rippling through the insurance sector in 2022. There was a slowing, in some states, of rate increases in 2024.
• After inflation, one of the biggest drivers of increased insurance costs is legal system abuse. The growing legal burden on business is driving up the cost of everything. The average family pays roughly $4,200 more a year in this "tort tax," according to the U.S. Chamber of Commerce Institute for Legal Reform. Meanwhile, the trial bar spent $2.5 billion in 2024 alone on nearly 27 million ads. They paid for those ads with money that came out of your pocket. 
• We can't control the weather or inflation, but we can be better prepared for storms as they become more frequent and intense. We have seen significant population growth and an increase in new homes being built in areas at risk for hurricanes, wildfires, and other natural disasters. There were 290,000 new properties built in high-risk flood areas from 2019 through 2023, which is almost one in five of the 1.6 million built in total in that period, a First Street analysis found. One solution is to push for widespread adoption and enforcement of stronger building codes to help homes and communities better withstand natural disasters.
• Insurers are not raking in huge profits; in many states, they are experiencing significant underwriting losses. Since 2020, U.S. insurers have incurred $505.9 billion in losses from natural catastrophes, in 2024 dollars. This represents 73% of global insured natural catastrophe losses, marking the costliest 5-year period ever for U.S. insurers. (source: Aon). In 2023, insurers lost money on homeowners' coverage in 18 states, up from 12 states five years ago, and eight states in 2013," according to The New York Times.

To learn more about what's driving auto insurance costs and ways you can save money, visit:
https://www.apci.org/insurance

MORE ABOUT David A. Sampson:
David A. Sampson is the president and CEO of the American Property Casualty Insurance Association (APCIA). He has been in this role since 2007. APCIA is the primary national trade association for home, auto, and business insurers, with a legacy dating back 150 years. Sampson has led the industry through some of the most consequential insurance issues of the last decade, including the COVID-19 response, preserving state statutory accounting during once-in-a-generation tax reform, and ensuring that the Dodd-Frank Act recognized the strong consumer protections already provided by state insurance regulators and the guaranty fund system. As a respected industry voice and proponent of private markets, Sampson is a frequent keynote speaker at industry and business events. In addition, he is a leading spokesperson for the property casualty industry in the media.

Produced for: American Property Casualty Insurance Association (APCIA)

SOURCE American Property Casualty Insurance Association