How hurricane damage down south could impact insurance rates in the Midwest
Aaron Cocking with the Insurance Federation of Minnesota says what happens in one state cannot directly raise rates in another. "Our insurance is regulated at the state level. Most states' rating laws require rates to be actuarily justified. They require that actuarial justification on a state-by-state basis.”
But Cocking says the hurricanes down south could have an indirect impact on insurance costs here in the Midwest. He says the demand for lumber and shingles could skyrocket in the coming months, driving up prices nationwide. "The roofing company is only going to be able to crank out a certain amount of shingles in a day, and if there is a huge demand for them down in Florida, the cost that it's going to cost us here in Minnesota obviously is going to be greater, too,” Cocking says.
WCCO Radio - The trickle-down effect of all these devastating storms is............
Insurance rates have skyrocketed, not only in storm ravaged areas, but across the country as well. A great chat with the President and CEO of the Insurance Federation of Minnesota.
Car insurance rates up 55% in Minnesota? New report says it's the highest increase in the country.
The report released by Insurify suggests car insurance rates in Minnesota have gone up by 55% this year, the highest increase in the nation. Aaron Cocking with the Insurance Federation of Minnesota was shocked when he first read the report. “We got calls from a lot of people who wondered, 'Does this look right?'” Cocking said. "I received texts and email from a number of lawmakers saying, 'Uh, is this something we're going to have to deal with? Is this something that is actually happening?'” Cocking has his doubts that Minnesotans will actually see the massive price increases that are mentioned in the report, but he agrees prices are going up. "One of the things we see, and I don't think it's a surprise to anyone, is the weather. We’re seeing a big impact from the weather,” Cocking said. See the full story below.
Star Tribune Counterpoint: Affordable Auto Insurance Program is not affordable, and not a solution
IFM President/CEO Aaron Cocking writes a counterpoint to a proposal to create a special insurance program for low-income residents. Cocking writes, “The program artificially lowers the required premium for one group of people, which raises the premium for another group of people. Think of it as squeezing a balloon: When you squeeze on one side, the air is forced to the other side.”
Your Money | Preparing for Severe Weather
IFM President/CEO Aaron Cocking speaks to Gordon Severson about preparing for severe weather. What you should do if your home is damaged, the protections you need and tips to help save you money. Cocking’s segment starts at 8:00 in the clip below.
As flooding inundates Minnesota, residents who lack flood insurance face uncertainty.
“Heavy flooding has inundated several parts of Minnesota over the past two weeks. However, a vast majority of Minnesotans lack flood insurance, leaving some with extensive property loss and an uncertain future.” IFM President/CEO Aaron Cocking spoke to CBS Evening News to talk about what is happening in Minnesota. “The enrollees in the national flood insurance program in Minnesota over the last several years are down and actually down considerably, which I think is the result of people looking at this and thinking, this is not going to affect me.” See the full story below.
Floods are raging in Minnesota. But few have flood insurance, state commerce agency says.
Aaron Cocking, president and CEO of the Insurance Federation of Minnesota, said people are often shocked to learn their homeowners' insurance doesn't cover flooding. "As we look across the devastation that we're seeing in the state right now, this is a wake-up call for all of us," he said. See the full story below.
Your Money | How to save on insurance
IFM President/CEO Aaron Cocking talks to Gordon Severson about the best tips and tricks for getting the most out of your home and car insurance. Cocking’s segment starts at the 8:15 mark in the clip below.
The future of homeowners insurance is uncertain in Minnesota. Here's why.
Minnesota insurance companies have lost money six out of the last seven years. The main culprit is hail. Last August’s hail storm here caused $1 billion in damages. With mounting losses for insurance companies, there is an increasing risk of insurers deciding to pull out of our region. "The effects of climate change are really having their most direct and financial impact to people as it relates to insurance," said Aaron Cocking, the president of the Insurance Federation of Minnesota. See the full story below.
What's driving up car insurance prices?
Aaron Cocking, president of the Insurance Federation of Minnesota, says the rate increases being seen now are from the impact of the last two years of inflation, which hit everything auto insurance covers: parts, labor and even medical bills covered in collisions. "Those were costs that hadn't been factored into insurance rates. Now that insurers have paid those losses at those higher numbers, those have gone through the process, have been factored into rates, have been approved. That's why consumers are now seeing those higher rates," Cocking said. See the full story below.
Why home, car insurance is getting more expensive in Minnesota.
"A lot of that's due to the extreme weather that we've been facing in Minnesota," Aaron Cocking, President of the Insurance Federation of Minnesota. "The last several years, Minnesota has the second most extreme weather of any state in the nation. And we see that in the in the form of these severe convective storms." See the full story below.
Homeowners insurance costs are going up in Minnesota and agents say severe weather is to blame.
“We are definitely seeing a significant increase,” said Aaron Cocking with the Insurance Federation of Minnesota. “Wind and hail is causing a lot of challenges for insurance companies right now.” Cocking says it makes sense that wind and hail events are having such a huge impact on insurance companies. He says to think about it this way, if your home is broken into, or there’s a fire, chances are your home is the only property that is affected. Hailstorms, however, can affect an entire neighborhood or city, and since these severe weather events are happening more often in Minnesota, insurance companies are making adjustments. See the full story below.
HOA, condo fees rising for some Minnesotans
“This is something we’re seeing far and wide,” said Aaron Cocking, president and CEO of the Insurance Federation of Minnesota. Cocking says the reason this may be happening is fewer insurance companies want to get involved with HOAs or condos. “I think the part where we’re at with the HOA/condo marketplace right now is that enough insurers have kind of taken it on the chin and they’re looking and saying, ‘This isn’t really the business we want to be in,’ or, ‘That’s not a risk we want to take right now,'” Cocking said. See the full story below.
As 2024 begins, rising auto and home insurance rates remain major concern.
It's no secret that home and auto insurance premiums have been skyrocketing in recent months. Last year, in fact, the average cost of car insurance increased by 19 percent, the largest recorded jump in roughly a half-century. Aaron Cocking, the president and CEO of the Insurance Federation of Minnesota, said this week's Wall Street Journal article describing so-called insurance "deserts" is something worth paying attention to. "That's one of the things we want to avoid in Minnesota, any action that makes us an insurance desert. That doesn't do anything for anybody," Cocking said. "We want to make sure insurance is not only available but also affordable. See the full story below.
Why do car insurance rates keep going higher? That is the question KARE-11 reporter Gordon Severson had for IFM President/CEO Aaron Cocking. "You have these increases in car thefts, carjackings, catalytic converter thefts, all of that is money paid out by insurers and premiums, and rates have to go up to correspond with that additional risk,” Cocking says. See the full story below.
