A new survey reveals that voters believe two factors are mostly to blame for rate hikes in the insurance industry — and they believe accountability is lacking.
What's happening?
In March, Data for Progress and the Insurance Fairness Project polled more than 1,200 "likely" voters in the United States, weighting the results to account for education, gender, age, race, geography, and their presidential vote.
Respondents overwhelmingly blamed insurance CEOs and executives for skyrocketing insurance rates, with 85% saying they were "very responsible" or "somewhat responsible." A mere 4% refused to place any responsibility on leadership.
However, voters recognized complex factors are at play. They listed extreme weather events supercharged by a warming climate as the second-biggest culprit. Around two-thirds said they were worried about the possible impact of future extreme weather events.
They also cited inflation, state insurance regulators, and the federal government/regulators, respectively, as the other top five elements "very responsible" for rate hikes.
Why is this important?
In January, after the Los Angeles area wildfires, the U.S. Department of the Treasury revealed that the average homeowner experienced a per-policy premium increase at a rate 8.7% faster than inflation from 2018 to 2022. Residents in high-risk regions paid even more.
While rate hikes can vary depending on a household's ZIP code, one thing is clear: Millions of Americans are struggling to maintain or even obtain coverage. This can hinder communities from rebuilding after natural disasters and ultimately impede economic growth.
"This report identifies alarming trends of rising costs of insurance — to consumers and insurers themselves — as well as lack of availability of insurance, all of which threaten the long-term prosperity of American families," said Janet L. Yellen, who served as Secretary of the Treasury from 2021 to 2025.
What can be done about this?
While challenges lie ahead, the Data for Progress and the Insurance Fairness Project survey reveals voters are hungry for relief.
Even though multiple states have passed legislation aimed at protecting homeowners, at least half of the respondents said that insurance companies, federal and state governments, and state insurance commissioners should be doing more to hold insurers accountable.
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Definitely 🥰 "Voters know that the states at higher risk of extreme weather aren't the only ones likely to be harmed by a property insurance crisis," Data for Progress wrote. "... These results remain consistent across party lines and regardless of whether voters have been personally impacted by extreme weather events in the past."
You can advocate for more action on this matter by contacting your representatives. Talking with family and friends can also help raise awareness about the insurance crisis.
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