Dr. David Marlett, Managing Director of the Brantley Risk & Insurance Center and IIANC Professor of Insurance, spoke on North Carolina's insurance hikes and insurance providers by state.
NC Insurance Commissioner rejects industry request for 42% hike to home insurance rates
Insurance companies frequently petition the state for permission to raise rates, but this year's request was significantly higher than normal: An average of 42% higher rates statewide, driven in part by rates that would nearly double in some parts of Eastern North Carolina, particularly on the coast.
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David Martlett, an Appalachian State University finance professor who leads the school's Brantley Risk & Insurance Center, said the 42% request from the insurance industry would indeed have been "a big hike" if approved. But it can also be a dangerous gamble to refuse any sort of increase, he said, since there's nothing forcing insurance companies to do business in North Carolina or anywhere else. If they're not making a profit in a certain state, they can always just leave.
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These Car Insurance Providers Have the Highest Market Share in Each State | Insurify
Using data from the National Association of Insurance Commissioners, Insurify examined the car insurance providers with the highest market share per state and found that five auto insurers have the largest market share in at least one U.S. state. State Farm holds the title in more states than any of its competitors—29 to be exact.
The U.S. had more than 260 million direct premiums written for passenger auto insurance policies by 125 companies, according to 2022 NAIC data. Despite the wildly competitive car insurance market, auto insurance rates are increasing, up 19.2% from 2022, according to the Bureau of Labor Statistics. The reason is an unfortunate mix of an increase in car accidents, supply chain disruptions, and nationwide inflation, which has created a 15.1% jump in car repair costs since last year.
“People are getting into more car accidents that are more severe, and the cars are more expensive to fix because of the more expensive accidents,” said David Marlett, managing director of the Brantley Risk and Insurance Center at Appalachian State University. “The industry is spending more money than it’s bringing in.”
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