Annie Hanna Engel | President and Chief Legal Counsel
If there’s one question we hear at Howard Hanna more than any other, it’s this: “Why are my insurance rates going up, and should I start shopping around?”
It’s a fair concern, especially for those balancing the demands of a fast-paced real estate world, your family and protecting the assets you’ve worked so hard for. Let me take a moment to explain what’s going on, how the industry is improving, and most importantly, why you’re in good hands with Howard Hanna Insurance.
Over the past few years, we’ve seen a dramatic uptick in the number and severity of natural disasters across the U.S., from wildfires and hurricanes to hailstorms and floods. In fact, the National Oceanic and Atmospheric Administration (NOAA) reports that we now average over 20 billion-dollar disasters per year, a sharp increase from the historical norm of just 8.5 billion-dollar disasters per year. According to a recent report, the first half of 2025 alone generated $126 billion in catastrophe-related losses, which is a record high.
When insurers face more frequent and costly claims, it impacts everyone’s premiums. On top of that, inflation and rising construction costs mean even routine repairs are more expensive than ever before.
But here’s the encouraging news: the insurance industry is finally getting smarter about how it manages catastrophic risk.
- Advanced modeling and AI are now enabling carriers to price risk with greater precision.
- The growth of catastrophe bonds (expected to exceed $18 billion this year) is helping insurers spread risk more effectively, adding stability to the marketplace.
- Top carriers are showing improved results, thanks to stricter underwriting and risk segmentation, such as Travelers, whose recent combined ratio reached 84.7%, with catastrophe losses decreasing by over $620 million year-over-year.
All of this means that while rates may still feel high compared to just a few years ago, the days of unpredictable swings are starting to smooth out. That’s a good thing for all of us.
When people see a rate increase, the instinct is often to start shopping for a better deal. However, in today’s market, that strategy rarely yields real savings, and it can come at the expense of coverage quality and consistency.
At Howard Hanna Insurance, you don’t have to go it alone.
We work with multiple respected carriers and stay ahead of changes across the entire industry. Our advisors provide personalized attention and expertise, cornerstones of our service philosophy, to review your policy, find all available discounts or credits, and ensure your coverage is exactly what you need.
If you’re wondering whether your current policy is still the best fit, let’s talk. Our team is here to provide a free, no-pressure policy review. We’ll help you understand your options, address your concerns, and ensure you’re protected for what’s ahead, without any unnecessary surprises.
The insurance world may be changing, but one thing never does: we’re here to guide you with integrity, insight, and care.
