Addressing Rising Insurance Costs Through Education and Resilience

Insurance coverage is often viewed as a reluctant purchase, but in today’s inflationary economy, understanding how insurance is underwritten and priced is crucial. Triple-I CEO Sean Kevelighan, on the ‘All Eyes on Economics’ podcast, stressed the shift from questioning high insurance rates to exploring ways to reduce them. Rising premiums result from factors like increased litigation, inflation, outdated regulations, and natural catastrophes.

Kevelighan highlighted the need for consumer education and community involvement in mitigation and resilience measures to better manage risks and control insurance costs. Regulatory barriers also contribute to higher premiums, as seen in states like Florida, Louisiana, and California. Addressing insurance costs requires a collective effort to tackle underlying risk factors.