Tuesday, July 13, 2021
You might be aware that your insurance rate depends upon your documents and eligibility. If you show a strong position, you’ll surely get a low rate. However, the rates can be unbelievably high if you demonstrate a weak position in your documents. Besides, the rates can also increase due to external factors like natural disasters and economic factors.
Moreover, state law changes can even affect insurance companies. A state regulator overlooks every insurance company, and any modification by that regulator directly affects insurance companies. The insurance industry is very dynamic, and significant changes take place daily. Some big shots may decide to merge, or a policy would knock down every provider.
There is so much that can happen. Without further ado, let’s see what’s currently happening in the insurance industry in the US.
Mergers
Quite recently, many merges between insurance companies have been taking place. Recently, Crest insurance announced that it is expanding its operations by acquiring Springberg Mc Andrew in Arizona. The original owners will continue to operate it from the original base.
Similarly, there is another merger place between liberty mutual and state auto group. The insurance company Liberty Mutual plans to acquire the state auto group, one of the huge insurance companies. The settlement price for the takeover is around one billion. This acquisition will be a big hit for Liberty mutual because it’ll expand the company’s position.
Texas Outlines New Licensing Rules.
Texas was recently making some changes in the licensing requirements of insurers. Today, the company successfully outlined the new policy. The new rules are as follows:
· There should be an increase in the hours of ethics courses. The time for the ethics course is increased from two to three hours.
· Life and health insurers will face revocations of their licenses. These insurers will have general lines agent license specializing in life, health, and accident qualification.
· There will be discontinuation of home-salaried employees from September. They’ll require a suitable license to carry on their job.
· No appointment of sub-agents. The insurance company will employ all the agents.
Drop-in Missouri Earthquake Insurance’s Policyholders
Over many years, the number of policyholders for earthquake insurance has been rapidly decreasing in Missouri. The sole reason being the sharp increase in insurance premiums. As per a report, the increase is close to 760% since 2000. There was a drop of 47% of policyholders between the period 2000-2020.
The rising costs were so high that the residents thought it was better to live without the coverage.
Endnote
As mentioned earlier, the insurance industry is very dynamic. Take a look at the above news and see for yourself. There have been two mergers, changes in licensing requirements, and a decline in Missouri’s policyholders in just a day. Whatever it is, it’ll surely be beneficial for you to get insurance coverage before any conflicting news.
If you keep on procrastinating on your insurance, you might suffer big time in the future. Don’t wait and get quotes from Insurance shopping before things go downhill.
