Triple-I has launched an interactive Insurance Affordability Index, providing members, consumers, policymakers and media with a state-by-state breakdown of what’s driving auto and home insurance costs across the country.
The big picture: Rising property/casualty premiums are having more effect on U.S. household budgets, but the reasons costs differ so much by state include the impacts of catastrophe risk, legal system abuse and market conditions.
How it works: Triple-I’s Index, built on the Insurance Research Council’s (IRC) affordability methodology, ranks states into five tiers – from most to least affordable – for both personal auto and homeowners coverage. Each state’s page features:
- Five-year and two-year premium-to-income trends.
- Insurance costs relative to home or vehicle value.
- Rankings on cost drivers like catastrophe exposure, claims litigation and repair costs.
- Regional hazards.
- Risk mitigation steps consumers can take to potentially lower their costs.
What we’re saying: “Insurance costs vary significantly across America, and for good reason: no two states carry the same catastrophe risk, legal environment or economic pressures,” said Sean Kevelighan, Triple-I CEO. “The Affordability Index brings the data and cost drivers together in one place, making those differences understandable, not mysterious.”
- “Insurance premiums are shaped by the underlying cost of claims,” added Pat Schmid, Ph.D., chief insurance officer at Triple-I and president of IRC. “Inflation and rising prices to repair and replace homes and vehicles are significant factors across the country. Where legal system abuse or catastrophe exposure adds further pressure, premiums rise accordingly.”
Additional Resources:
- Triple-I Insurance Affordability Index
- Insurance Research Council: Homeowners Insurance Affordability: Countrywide Trends and State Comparisons
- Louisiana: State of the State: Louisiana Property/Casualty Insurance Market
- Florida: Florida Premiums Drop Amid Post-Reform Stability, New Triple-I Insurance Brief Shows
- Texas: Texas Home Insurance Market Impacted by Complex Mix of Natural Catastrophe Exposures
- California: California Struggles to Fix Insurance Challenges
About the Insurance Information Institute (Triple-I)
Since 1960, the Insurance Information Institute (Triple-I®) has been the trusted voice of risk and insurance, delivering unique, data-driven insights to educate, elevate and connect consumers, industry professionals, policymakers, and the media. An affiliate of The Institutes, Triple-I represents a diverse membership accounting for nearly 50% of all U.S. property/casualty premiums written. Our members include mutual and stock companies, personal and commercial lines, primary insurers and reinsurers – serving regional, national and global markets.
Triple-I is a registered trademark of the Insurance Information Institute. All rights reserved.
About Insurance Research Council
The Insurance Research Council (IRC), affiliated with The Institutes, is an independent, nonprofit research organization supported by leading property and casualty insurance companies and associations. IRC provides timely and reliable research to all parties involved in public policy issues affecting insurance companies and their customers. IRC does not lobby or advocate legislative positions.
About The Institutes
The Institutes® are a not-for-profit dedicated to helping people and organizations succeed in the essential disciplines of risk management and insurance. Through numerous affiliated business units and brands, we educate, elevate, and connect students, professionals, and organizations by equipping them with the knowledge, skills, and collaboration they need to tackle the most complex risk management and insurance challenges. Backed by more than 115 years as a trusted knowledge partner, we empower people and organizations to create a more resilient world.
The Institutes is a registered trademark of The Institutes. All rights reserved.