MARKET CYCLES
Dear (Customer Name):
You've probably noticed that your insurance rates have gone up. It's nothing personal. The insurance industry is in what is called a 'hard market,' which simply means that insurance rates are higher and coverage is harder to find in some areas.
Insurance companies have been plagued by increasing claims and mounting liability litigation. Thus, the impact of these losses has moved to the consumer level, affecting your insurance rates.
To put it on more personal terms, let's look at your Homeowners insurance. You are concerned with protecting your home and your personal belongings, but it's also very important that you protect yourself against liability lawsuits. If a neighbor tripped over a toy on your front lawn, you could be sued for hundreds of thousands of dollars.
That is what's happening with insurance companies. More people are suing, and for larger amounts. However, we'll continue to shop the marketplace to find you the best coverage at the best price. We'll also continue to keep you informed about how changes in the marketplace affect you and your coverage.
Sincerely,