Severe weather begins to take its toll on Wyoming insurance industry
Over the past two years, severe weather has had a profound impact on the U.S. insurance industry. The effects of natural disasters have been more modest for some states than they have been for others. In Wyoming, the state’s Insurance Department warns that two years of severe weather are driving up insurance premiums and deductibles. State insurance officials note that last year’s disasters, in particular, are having an impact on insurance prices this year.
Wyoming and surrounding area classified as high-risk zone for natural disasters
James Mitchell, staff counsel with the state’s Insurance Department, notes that Wyoming is situated in a region where property insurance prices are on the rise. The state is considered to inhabit a high-risk zone, a classification the region has been bestowed with due to four consecutive years of disastrous events. Last July, two powerful hailstorms caused a great deal of damage in Wyoming. One of these storms caused more than $120 million in insured losses, according to the Rocky Mountain Insurance Information Association.
2011 storms cited as contributors to insurance rate hikes
Storm damage claims have been a particular thorn in the side of the insurance industry. Some claims processing firms have reported handling more than 1,000 claims concerning damage caused by hailstorms and other natural disaster in the past year. In an attempt to recover financial losses, insurance companies are poised to raise the rates on the policies they offer to consumers. The Wyoming Insurance Department has begun warning state residents to take heed and ensure they are getting the coverage they need.
Insurance officials urge consumers to ensure they are protected through their insurance policies
The Insurance Department is encouraging consumers to examine their existing insurance policies to ensure they provide the appropriate amount of protection for their homes and properties. Those who are looking to purchase new insurance policies are being advised to shop around for policies that match their needs and are within their price range. State regulators suggest that there are a wealth of insurance companies that offer comprehensive coverage at affordable rates, despite the recent spike in insurance premiums.