Inflation has exerted its influence across various sectors, and the insurance industry is no exception. Insurance carriers have been impacted by the pressures of inflation, resulting in increased operational costs. Consequently, insurance carriers are compelled to limit their capacity and raise insurance rates to bolster their profit margins.
This trend has led to an increase of layered policies as a response to the evolving market conditions. The escalation of claims costs can be attributed to the rising expenses of supplies. As a result, these additional costs are passed on to insured individuals through augmented insurance premiums. In the state of Florida, we are witnessing substantial premium increases for multifamily properties, ranging from 38% to 48%.
To mitigate the impact of escalating insurance premiums, insured individuals are actively exploring innovative strategies to reduce their financial burden. These strategies encompass the adoption of larger deductibles, imposition of loss limits, and the utilization of non-traditional methods for transferring insurance risk, such as captives, risk purchasing groups, and self-insured programs. It is crucial to note that the implementation of these non-traditional programs necessitates a comprehensive and rigorous insurance review, coupled with the need for additional layers of approval from Lenders.
With an increase in insurance waivers that require scrutiny and support from Lenders and The Agencies, our industry experience enables us to help you navigate this non-traditional insurance market.
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