Business : PROPERTY INSURANCE GETS INTERESTING IN IOWA

We are entering an unprecedented time in the insurance world unlike any we have seen before.  "Large reinsurance firms are pulling out of Iowa after a string of natural disasters, jeopardizing coverage for the state's small-town farmers and residents," Des Moines Register July 31.   RE-Insurance companies have gone from over 40 to less than 20 and have put stipulations in place to stay in business. This could mean some pretty drastic changes if insurance is going to continue to be offered in Iowa.  The fear is now that extreme Iowa weather patterns like tornados in December and March and frequent derechos are the new norm and pricing needs to be adjusted accordingly.

The insurance industry is seeing rate increases in both home and auto.  Not only have companies had high claims in the home market continually the last several years from extreme weather worldwide but last year's auto industry took a major hit with new car prices, labor/part shortages, and severe weather claims. 

Consumers should expect to see higher deductibles on property insurance and companies to get much more selective in the properties and auto risks they choose to insure.  Consumers should expect to see rate increases in all lines of business including boat, recreational vehicles and campers as the reinsurance companies take substantial rate increases the premiums they charge. They will also require insurance companies to have much higher catastrophic loss deductibles going forward.  These rate increases are going to be passed onto the consumers.  

Iowa is not the only state to be affected by the reinsurance companies as all states are seeing their share of weather devastation including Hawaii in the horrific fires that just recently occurred.  These new stipulations may become normal going forward.  It is a rapidly changing time in insurance.