Insurance Costs Still Rising

Those exposed to catastrophes see biggest property increase.

The cost of commercial property insurance rose again during the first quarter, insurance brokerage firms reported recently, particularly for companies that are exposed to catastrophes.

The increases reflect the high price of last year’s catastrophes, as well as recent changes to insurance models. Willis notes that property losses in 2011 totaled $108 billion, the second largest ever after 2005’s $123 billion in losses. And it estimates that a new modeling tool from RMS that’s being implemented by many insurers will increase loss projections for windstorm and storm surge for properties in coastal areas by 40% to 60%.

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