Insurance premium rates are a function of both the individual and group costs and claims environment.
A portion of the insurance premiums collected by an insurance company are set aside and invested. When a claim is incurred by an insured, monies are removed from the pool to pay the claim. If an insurance company incurs more claims than the insurance premium funds it has collected and invested, it will be forced to raise the rates it charges for its insurance.
Of course, insurance premium increases must be approved in advance by the state regulatory body overseeing insurance companies. But, in the past few years (2010-2012), many national insurance companies have incurred losses in excess of their set aside, invested premium funds. Hence, many insurance companies are asking their state regulatory body for increased insurance premiums.
If you have experienced an increase in insurance premiums, please do call 515/232-5240 and ask for Andrea Shearer, Tessa Everman, or Burton Heginger at Triplett Companies for advice and help reducing your current premium.