Ohio has always been a favorable state for insurance companies to do business in. This is due primarily to two reasons. First, and speaking generally, we don’t have devasting earthquakes, hurricanes, or floods like other areas in the country do. Secondly, the regulatory climate is open and fair. Because of these factors, many national and regional insurance companies are headquartered in Ohio. Hundreds of others offer insurance to residents and businesses in Ohio. This means there are plenty of choices for consumers to choose from, and it’s kept premiums low. In fact, Ohio historically ranks in the top 10 states, for lowest auto and home premiums in the country.
Because of an unusually large number of storms (including Hurricane Ike) the last five years, premiums for homeowners and building owners in Ohio have been increasing. We think that trend will continue for at least the next two years. Auto insurance premiums have been stable and we don’t see that changing. People have been driving less, and cars are safer, both of which leads to fewer accidents.
There are signs that commercial insurance premiums are firming, with most carriers attempting to raise prices slightly. There is still a lot of competition, and for businesses with an outstanding claims history, there are plenty of companies that will offer favorable premiums. Ohio health insurance premiums continue to increase every year and it’s difficult to predict what the future holds here, as this is a political hot button and changes to the system may be made.
