The Growing Property Insurance Crisis
As extreme weather events continue to escalate in both intensity and cost, property owners across the United States are feeling the burden. Homeowners and renters insurance prices have been rising year over year for policyholders nationwide, with hazard policies like wildfire and flood insurance facing similar price hikes. The recent wildfires in Southern California have provided a sobering look at the future, as insurance providers in the state announced they are seeking approval for further price hikes and deciding to cancel or no longer renew policies in high-risk areas.
A recent survey conducted by Data for Progress and the Insurance Fairness Project sheds light on voters’ awareness and views of the national insurance crisis. The poll surveyed 1,203 likely voters to understand their attitudes about how to resolve current challenges in the industry, such as rising home insurance rates and providers exiting some state insurance markets.
Public Awareness and Concern
The survey reveals that 71% of voters have read or heard at least a little about recent changes impacting the property insurance industry in the U.S. A strong majority of voters are concerned about future increases in property insurance prices, with 78% expressing some or significant concern. This concern is consistent across party lines and is even higher among voters who have personally experienced or know someone impacted by extreme weather (85%).
Factors Driving Change
When asked about the forces driving these changes, voters place the most blame on insurance executives, with 85% of respondents saying they are at least somewhat responsible. Nearly half of voters (46%) rate these executives as being “very responsible” for recent spikes in insurance rates. However, voters also acknowledge the role of extreme weather due to climate change (37%) and inflationary pressures (36%). This suggests that voters understand the multifaceted nature of the issue, recognizing both the impact of climate change and potential profiteering by insurance executives.
Calls for Government Action
The survey indicates that voters want their government to step in to keep insurance prices fair and hold insurance companies accountable. Sixty-one percent of voters feel that the federal government is doing too little to ensure home insurance companies act in their customers’ interests. Similarly, 52% and 50% of voters believe that their state government and state insurance commissioner, respectively, are not doing enough to hold these companies accountable.
Climate Risk and Personal Impact
The poll also highlights voters’ awareness and concern about climate risk and its potential effect on insurance premiums. Nearly 2 in 5 voters believe their state is at higher risk of extreme weather events, and more than half (53%) have either personally been impacted by such events or know someone who has. Two-thirds of voters (67%) are concerned about the increasing frequency of extreme weather events in the future, rising to 74% among those with personal experience of extreme weather.
Concerns About Market Stability
Voters are also worried about the stability of the property insurance market. Seventy percent of likely voters express concern about the market’s financial stability, a sentiment that transcends party lines and personal experience with extreme weather. Moreover, nearly three-quarters of respondents (74%) believe it is likely that a breakdown in the property insurance market would affect them personally.
Opposition to Insurance Company Practices
The survey reveals that voters do not support insurance companies passing costs onto consumers. When presented with a scenario where insurance companies implement emergency rate increases following higher claim filings in states like California and Florida, only 37% of voters agree that it is appropriate for insurers to charge policyholders more under such circumstances. In contrast, 57% of voters disagree with this practice, with opposition holding across party lines.
Conclusion
The polling reflects that while voters are aware of and concerned about the growing challenges facing the property insurance industry, they believe that the institutions capable of offering solutions are not doing enough. Voters nationwide support stronger government action to protect consumers from the impacts of climate change on property insurance. As the risks associated with extreme weather continue to rise, voters expect their government to take more decisive action to safeguard both their property and financial well-being.
