Title: The Turbulent State of Insurance: Insights from Karl Susman on Market Shifts, Affordability, and the Path Forward
In the constantly evolving landscape of insurance, few voices carry the experience and balance of insight that Karl Susman brings to the conversation. As a seasoned insurance broker and radio host, Susman operates at the critical intersection between insurance carriers and consumers — a space where financial realities, risk management, and human needs collide.
His observations shed light on one of the most pressing challenges in the insurance industry today: the widening gap between what insurers can sustainably offer and what consumers can realistically afford. This isn't just a matter of company policy or consumer preference — as Susman puts it, "This really isn't politics. This is really just math."
That statement captures the essence of the insurance dilemma facing millions across the country. Behind every policy, premium, and claim is a careful calculation — a formula balancing risk exposure, claim costs, market competition, and regulatory oversight. When one side of that equation shifts dramatically, the entire market feels the strain. And according to Susman, that's exactly what's happening today.
One of the clearest examples of this strain lies in the auto insurance sector. Susman notes that insurers are increasingly hesitant to write new business — a troubling sign for both drivers and brokers. "They literally say, 'Don't write, please,'" he explains, describing the restrictions many carriers have placed on agents.
Several factors contribute to this phenomenon. Rising repair costs, elevated accident rates, and what Susman calls "increasingly bad driver behavior" have combined to create a perfect storm for insurers. Each claim costs more to resolve, each risk feels more volatile, and the margin for profit narrows.
From an insurer's perspective, these rising losses make it difficult to justify taking on additional risk — especially in states like California, where rate adjustments are subject to lengthy approval processes and strict regulatory oversight. As a result, some carriers are tightening underwriting standards, withdrawing from certain markets, or even ceasing new business altogether.
For consumers, this translates into fewer options and higher prices. Some companies may demand full payment upfront instead of offering monthly plans, while others may simply refuse to insure higher-risk drivers. The outcome is a shrinking pool of affordable coverage — a situation that leaves both customers and brokers like Susman in a bind.
While the auto insurance situation is troubling, the homeowners market is in even deeper distress. According to Susman, homeowners are now "lucky to find adequate and affordable coverage." When shopping for quotes, he sometimes finds only one or two options — or none at all.
The reasons for this are multifaceted. The escalating frequency and severity of natural disasters — from wildfires and floods to hurricanes — have driven property claims to unprecedented levels. Insurers, facing billion-dollar losses, are reassessing their exposure and withdrawing from high-risk areas.
This retreat has created a scarcity of available p ...
