Happy Thursday! In this week's Big I Buzz, we have news about WCRB's rate changes, fraud in disaster claims and a look at how auto insurance rates have changed over the past decade. We also want to thank all of you that attended InsurCon2022 last week! Look for an InsurCon recap coming soon!

Today, WCRB (Wisconsin Compensation Rating Bureau) announced an -8.47% rate change (8.47% decrease). This rate change will become effective October 1, 2022.The Circular Letter announcing this change can be found here.


Fraud in Disaster Claims Cost Insurers as much as $9.2B in 2021
In 2021, property & casualty insurers paid an additional $4.6 billion-$9.2 billion in disaster claims as a result of fraud, according to the National Insurance Crime Bureau (NICB).

The NICB estimates fraud adds 5%-10% to the overall amount in claims paid after a disaster. The FBI found similar results when looking at reconstruction costs following Hurricane Katrina: Of the $80 billion in government funding to aid rebuilding efforts, insurance fraud accounted for $6 billion, or about 7.5%.

Fraud is also contributing to increasing insurance costs across the U.S., according to NICB, which noted contractor fraud is one element contributing to the property insurance crisis in Florida.

How Auto Insurance Rates have Changed Over the Past Decade
1970s
– Average monthly insurance premium: $56
– Premium increase from start of decade: $34 (up 80%)

1980s
– Average monthly insurance premium: $119
– Premium increase from start of decade: $85 (103%)

1990s
– Average monthly insurance premium: $225
– Premium increase from start of decade: $76 (43%)

2000s
– Average monthly insurance premium: $315
– Premium increase from start of decade: $100 (39%)

2010s
– Average monthly insurance premium: $464
– Premium increase from start of decade: $196 (52%)

2020s
– Average monthly insurance premium: $564
– Premium increase from start of decade: $38 (7%)

For more news, check out the Action News section of our weekly e-newsletter, Big I Buzz. If you aren’t subscribed, click here to add your email to our emailing list.