Tag: inflation

How the 2.5% Social Security Increase Impacts Retirees

H. Cutner
Social Security Increase

Social Security’s Cost-of-Living Adjustments: What Do the Numbers Tell Us? The Cost-of-Living Adjustment (COLA) for Social Security is an essential mechanism designed to ensure that benefits keep pace with inflation. Over the past decade, these adjustments have varied significantly, reflecting the economic climate and inflation rates. Notably, in 2023, beneficiaries experienced an 8.7% increase, the largest in nearly 40 years, driven by soaring inflation. In contrast, the 2024 adjustment was more subdued at 3.2%. Historically, the COLA has averaged around 2.6% over the last 20 years, indicating that this year’s…

Read More

Auto Insurance Rates Surge Amid Economic Pressures

Ben Jones
Auto Insurance Rates Surge Amid Economic Pressures

A Closer Look at the Rising Costs of Motor Vehicle Insurance in the US Motor vehicle insurance, a non-negotiable requirement for drivers across the U.S., has seen a significant surge in costs since 2020. This auto insurance rate increase has been driven by a confluence of economic factors, including inflation and rising repair costs. Between June 2023 and 2024 alone, personal motor vehicle insurance rates rose by an eye-watering 19.5%. A Rapid Rise Outpacing General Inflation The Consumer Price Index (CPI) data from May 2024 reveals that the motor vehicle…

Read More

North Dakota launches auto insurance cost comparison tool

H. Cutner
Auto Insurance - Car - Calculator - Cost Comparison - North Dakota

The state’s Insurance Department has released its annual survey results comparing prices North Dakota’s Insurance Department has released the results of its annual auto insurance cost comparison, as well as a helpful tool to help drivers in the state to find the coverage they need at the right price. The survey involved obtaining quotes for six-month policies The department obtained quotes from auto insurance companies in the state for 12 different hypothetical drivers seeking six-month policies. The purpose of the survey was to better understand how premiums vary among motorists…

Read More

State Farm General Downgraded by AM Best Amidst Weakening Balance Sheet

Live Insurance News
State Farm Insurance Building - A downgrade to B

Overview of State Farm Downgrade In a move that has caught the attention of policyholders and investors alike, AM Best has downgraded the Financial Strength Rating (FSR) of State Farm General Insurance Company (State Farm General). This marks a significant shift from an ‘A’ (Excellent) rating to a ‘B’ (Fair) classification, while the Long-Term Issuer Credit Rating (Long-Term ICR) dropped from “a” (Excellent) to “bb+” (Fair). Implications of Ratings – Balance Sheet Strength Assessed as Weak The Credit Ratings issued by AM Best take into account a variety of factors…

Read More

Unveiling the Mechanics Behind the Huge Insurance Rate Hikes in the Past Year

Live Insurance News
home and auto insurance record rate increases

The economic terrain is experiencing a significant transformation, with insurance premiums on the rise and the looming financial implications of the climate crisis. In this article, we’re delving into the reasons behind your recent financial strain and what future developments you might expect. Reinsurance Rates: The Behind-the-Scenes Increases Christian Mumenthaler, the CEO of Swiss Re, which is the second-largest reinsurance company globally, has emphasized that his company’s mission is not to arbitrarily inflate prices. Instead, they aim to provide a fair valuation of risks. This implies that in recent years,…

Read More