In today's world, the phrase "new normal" applies to almost everything—from how we work to how we shop. But few industries illustrate this shift as vividly as insurance.
As Karl Susman, host of The Insurance Hour, explains in his latest episode, both consumers and insurers are grappling with unpredictable weather, soaring costs, and inflationary pressures that have fundamentally changed how risk is assessed and priced. From wildfires in California to floods in Texas, these challenges are not isolated incidents—they're signals of a global transition in how insurance works.
This blog explores the key themes from Susman's discussion: the impact of inflation on premiums, why rates differ so much across states, and what practical steps consumers can take to protect themselves and control costs.
Susman opens with an example familiar to many Californians: sudden weather alerts interrupting sunny days with warnings of flash floods or severe storms. "It's not hyperbole to say never before," he remarks. "Weather events we used to consider rare are now routine."
That unpredictability—what meteorologists once called "acts of God"—has become the norm. And it's not just California. Recent wildfires in Texas destroyed over 500 homes, shocking residents who rarely associate the Lone Star State with large-scale fire disasters. Even more concerning, many of those affected homeowners were uninsured.
When Susman investigated why so many had gone without coverage, the answers were sobering: "A lot of people said the premiums were too high. They simply couldn't afford it."
This raises an uncomfortable question for policymakers and the public alike: are rising insurance costs pricing people out of protection—or are consumers underestimating the true cost of going without it?
Susman doesn't assign blame but points to a bigger picture. "When we see insurance prices going up, there's a reason. It's not random, and it's not just happening in California or Florida—it's happening everywhere."
To illustrate just how uneven insurance pricing can be, Susman rattles off some eye-opening numbers:
Alabama: $2,085 average annual homeowners premium
Alaska: $1,019
California: $1,266
Colorado: $3,212
Kansas: $4,0 ...
