Insurance companies are worried about the future

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Lead story

The U.S. is facing an insurability crisis, and it isn’t just in states prone to hurricanes and wildfires. Nationwide, rates rose 11.3% on average in 2023, and coverage is shrinking at the same time.

Why is this happening?

Andy Hoffman, a University of Michigan business professor who follows the insurance industry, explains what insurance companies consider as they decide whether to raise rates, cut coverage or pull out of states entirely – and why they’re worried about the future.

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Stacy Morford

Environment + Climate Editor

Hurricane Beryl tore up homes in Freeport, Texas, in July 2024. Brandon Bell/Getty Images)

Americans face an insurability crisis as climate change worsens disasters – a look at how insurance companies set rates and coverage

Andrew J. Hoffman, University of Michigan

Insurance costs are rising quickly across much of the country. Hurricanes are part of the reason, but it’s the other perils common across the Midwest and Great Plains that complicate costs.

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