California regulators have approved rate increases for Mercury General and Safeco insurance companies, impacting a combined 666,000 customers. Mercury General plans a 12% increase effective in March for homeowners and renters, while Safeco will implement a 7.2% hike in May, affecting only homeowners. Both companies attributed the increases primarily to soaring construction costs and supply chain issues, noting that the hikes are not directly linked to the wildfires earlier this year. They emphasized that these decisions were made prior to the wildfires, highlighting broader inflationary pressures in the insurance market.
"Most property insurance consumers countrywide are experiencing higher premiums. Significant inflationary pressures on labor and construction costs are impacting the cost of insurance."
"The decision to boost rates was linked to mounting construction costs in California and has been more than eight months in the making, long predating the fires."
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