From Business Insider:
The reasons for the jump in insurance prices are varied, but the most obvious is the climate crisis. The number and intensity of destructive weather events are on the rise, causing greater damage to homes and cars. Inflation has made the work and materials necessary for repairs more expensive. As insurers are forced to pay out more in damages, they end up raising their prices. In recent years they haven’t raised premiums enough to cover their costs — the American Property Casualty Insurance Association suggests the industry lost nearly $26 billion in 2022.
“You might get mad at the insurance company for raising your premiums,” said Mark Pauly of the University of Pennsylvania’s Wharton School of Business, “but they’re doing that either because they already have suffered substantial losses in their homeowners business or they’re trying to protect against having that happen in the future.”