Frequently Asked Questions

The escalating cost of insurance stems from various factors that are interconnected. Firstly, the frequency and severity of natural disasters, such as hurricanes, wildfires, and floods, have led to higher payouts by insurance companies, compelling them to increase premiums to maintain profitability. Secondly, the advancement in medical technology and healthcare costs have raised expenses related to health insurance as treatments become more sophisticated and expensive. Additionally, inflation can affect the cost of living, which affects the replacement value of insured assets, leading to higher property insurance premiums. These factors, combined with regulatory changes, evolving risk assessment models, and economic fluctuations, collectively contribute to the upward trend of insurance costs, causing financial pressure on individuals, businesses, and insurers alike.

Moreover, the regulatory environment and compliance requirements can impact operational costs for insurers, which may be passed on to policyholders. As a result, insurance companies adjust their pricing structures to reflect the changing risk landscape, ultimately contributing to the rising cost of insurance across different sectors.