Recent storms put some financial pressure on insurance companies operating in Ohio
Recent storms have had a major impact on the insurance industry in Ohio. Recently, a tornado struck Green County, causing several thousands of dollars in damages. Though insurers do not expect losses to be to the degree of severe storms in the past, the recent storm is yet another blow to the insurance industry, which has begun to show concern for the increase in frequency of natural disasters. Some of these concerns are related to the potential effects of climate change.
$25 million in losses reported from 2010 to 2014
Between 2010 and 2014, an estimated $25 million in losses has hit the insurance industry, which is significantly more than the losses that insurers saw in the state from 2000 through 2009. Notably, however, 2008 saw a surge in losses due to severe weather. This data is quite important to the insurance industry, as it can be used to predict the losses that could be seen in the coming years.
According to the Ohio Insurance Institute, the average cost of homeowners insurance in the state will reach $830 a year, a modest increase over what it was in 2014. Despite an increase in insurance costs, Ohio is still home to relatively inexpensive homeowners insurance coverage, falling behind the national average in terms of premiums. Ohio ranks as the home for the ninth-lowest insurance rates in the country, according to data from the Insurance Information Institute.
Insurance companies in Ohio are well situated to manage the losses they may face from severe natural disasters in the future. The losses that these companies experience, however, may translate into higher premiums in the future. Insurers often raise premiums as a way to recover from the losses they see from natural disasters. Exactly how much premiums will increase is uncertain, however, as many other factors will determine the cost of insurance coverage.
