If the past few years have taught us anything, it is that nothing is certain. Over recent years we have seen flood insurance get flipped on its head; recent insurance rates increase with inflation and a 108% increase in medical insurance claims in 2021.
All these insurance changes and fluctuations are tied to economic factors. When the price of lumber skyrocketed, it directly impacted insurance coverage for homes, while also impacting the insurance premiums for business owners in the construction industry like contractors or wood furniture manufacturers.
Now the question is; what is going to happen to insurance in 2023?
Below are our projections on what to expect in insurance for 2023. How it will improve, how we need to prepare, and the expected rate increases or hopefully decreases.
2023 Personal Insurance Projections
Personal insurance went through major increases this past year. While we expect many of them to level out as the market calms down, we can also expect to see continued changes in flood insurance as well as homeowners. Hurricane Ian has already surmounted about $474 million in insurance claims, and not all of the claims have been filed yet.
Auto insurance is dependent on the number and amount of claims as well as the cost of vehicles. While vehicles are expensive, they are nowhere near the price level we saw in December 2021 through February of 2022. While auto insurance is always expected to increase, we probably will not see the same level of increase.
What Can We Expect For Business Insurance In 2023?
We are excited to say after the past few years of chaos, we can expect commercial insurance to level out. We have seen a variety of business insurance level out as aspects of the market calm down. We hope to see this continue for business owner’s insurance.
Where We See Business Insurance Increasing In 2023
There is something, or rather someone, who has increased in value and importance in business. Your workers and employees. As it is harder to hire employees or keep employees. As that challenge continues, so does the challenge of replacing directors and officers within a business. We can expect to see employment practice insurance to increase, specifically directors and officers insurance.
With changes in employment come changes in health insurance as more people might have to move to private health insurance or Medicare and Medicaid depending on their age. With the larger baby boomer population retiring combined with the lack of workers, the entire market is in flux. As these changes occur, the market will constantly be trying to play catchup. Insurance will also be playing catch up with the economic changes.
Marijuana and Employer Insurance In 2023
Presently there is an unclear area in insurance for employers. While employers can’t discriminate (hiring or firing) employees with medical marijuana cards. An area of uncertainty is brought to the attention of the court system around insurance. The question falls on liability around the employees’ drug test. While they may not be under the influence, in past court cases, the presence of marijuana in their system would make the liability fall on the employee and employer.
In 2023 we expect to see court cases carried out that provide clarity in this area and potentially laws surrounding this issue.
Strickler Insurance In 2023
No matter what happens in 2023, Strickler Insurance will always be providing excellent insurance. We work with you and your business or you and your family to protect you and all that you care about. Contact us for all your 2023 insurance needs.
