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Global insurer projects home insurance rates to rise 5 percent in second quarterPosted On Tue, May 3, 2011
From the earthquakes in Japan, to widespread flooding in Canada to a devastating string of tornadoes in the Midwest and South, insurance industry analysts have been expecting home insurance rates to rise as a result. And earlier this week, their suspicions may very well have been confirmed.
According to the global insurance broker Willis Group Holdings, updated catastrophe models and the preponderance of environmental disasters in the first quarter may lead to a 5 percent increase in home insurance rates nationwide in the second quarter.
However, the insurance organization said commercial property rates should remain unaffected because of what it described as "abundant capacity." Thus, overall, the property insurance market should emerge relatively unscathed.
"The property market is shifting, especially for catastrophic risks," said Todd Jones, president of Willis Group North America. "The overall marketplace, however, appears to be stable, and … no major reversals so far are detected. This speaks volumes about the resiliency of our industry."
However, some insurers may be forced to increase their rates for auto insurance as opposed to home insurance. If so, policyholders are encouraged to shop around to find the best rate.
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