New Report Reveals Rising Dwelling Insurance Premiums Disproportionately Damage Seniors and Householders with Low Credit score Scores – PRNewswire

Columbus, Ohio, July 22, 2021 / PRNewswire / – Matic, a leading Insurtech platform, today announced its mid-year premium trends report, highlighting insights from 36 property and casualty insurance carriers. The results show that rising home insurance premiums disproportionately affect homeowners with FICO scores below 580. While older homeowners don't have the highest average premiums when compared to other age groups, they are the most vulnerable to overpayments and have significant opportunities to save.

Since its launch in 2017, Matic has been collecting and analyzing insights from its growing digital ecosystem of carriers that cover home, auto and other personal insurance. According to Matic's mid-2021 results, which examined trends from 45,000 policies and 3.2 million offers, home insurance premiums are increasing nationwide, increasing by an average of 4% * year-on-year. Homeowners with a FICO score below 580 saw the largest increase in rising insurance premiums of 6.4%, which had an additional impact on homeowners $ 85 per year on average with a 12-month policy.

Increasing coverage A or housing coverage correlates with the overall increase in home insurance premiums. On average, coverage ratio A rose by 6.3% year on year; However, homeowners with FICO scores below 580 saw the largest increase at 9%.

FICO score

Average Premium
2019/20

Average Premium
2020/21

% change

Average Cov A
2019/20

Average Cov A
2020/21

% Change

<580

$ 1,327

$ 1,412

6.4%

$ 253,079

$ 275,819

9.0%

580-669

$ 1,237

$ 1,304

5.4%

$ 267.207

$ 278,197

4.1%

670-739

$ 1,164

$ 1,208

3.8%

$ 291,349

$ 306,542

5.2%

740-799

$ 1,082

$ 1,133

4.7%

$ 315,488

$ 326,601

3.5%

> 800

$ 1,061

$ 1,098

3.5%

$ 341,425

$ 356,236

4.3%

"In most states, an insurance score, which is determined in part by creditworthiness, represents the likelihood of a claim being made and affects the premium a homeowner pays for coverage," said Ben Madick, Co-Founder and CEO of Matic Insurance. “The housing market, material costs and labor costs increased even before COVID-19. We are now seeing these increases in the estimated home replacement cost (Cover A) which will ultimately lead to increases ”in insurance premiums, among other things. While homeowners with lower FICO scores saw a disproportionate increase, they get better coverage and the gap between Premium and Coverage A is closing. "

Another key finding from the study found that homeowners over 63 are the most vulnerable to overpayments for home insurance. According to Matic's data, the average premiums tend to be highest among 43- to 55-year-olds, while the premiums for seniors do not decrease proportionally. The data suggests seniors overpay because they don't regularly review their policies and annual premium increases add up over time. Matic found that homeowners over 63 save on average $ 751 annually simply by monitoring, reviewing and adjusting your insurance policy.

Old bucket

Average Premium 2020/21

Average Cov A 2020/21

Average Save 2020/21

<27

$ 919

$ 206,747

$ 329

27-34

$ 1,047

$ 259,399

$ 389

35-42

$ 1,133

$ 299,368

$ 454

43-55

$ 1,243

$ 319,186

$ 625

56-62

$ 1,221

$ 313,433

$ 573

> 63

$ 1,183

$ 298,888

$ 751

"There are many factors that contribute to the huge savings. Home improvement and the bundling of cars could play a role, but the most common occurrence comes from a customer who has lived in the same house for over 20 years," said Madick. "Even without damage, a homeowner is likely to see a 3-4% increase in premiums each year. Over time, that increase is not insignificant."

Industry studies have shown that 40% of homeowners haven't reviewed their policy in the past two years. Regular monitoring can help homeowners keep track of their rate and changing coverage needs.

"Matic has always been an unbiased platform and we believe insurance should be transparent to all homeowners," said Madick. "We created RateReview ™, an insurance monitoring service to help homeowners avoid overpayments and ensure they have the right policy."

Matic's proprietary insurance technology enables homeowners and car owners to shop online or work directly with a licensed advisor. With coverage in all 50 states and over 30 A-rated carriers available through their marketplace, Matic offers comprehensive property and casualty insurance for consumers beyond home and auto, such as umbrellas, floods, earthquakes, RVs, motorcycles and more.

* Method: FICO Home Insurance Premiums and Coverage A are an average of a random sample of 45,000 policies and 3.2 million offers analyzed June 1, 2019 by May 31, 2020 and June 1, 2020 by May 31, 2021. The savings by age are based on the difference between the current policy and the new policy that is between June 1, 2020 by May 31, 2021.

About Matic
Since 2014, Matic has changed the landscape of the insurtech industry by incorporating insurance into home and car ownership. Today, Matic's digital insurance marketplace has over 30 A-rated home and auto transport companies and distribution partners in industries ranging from mortgage lending and servicing to banking, real estate and personal finance. With a single-minded focus on advocacy for policyholders, Matic has created an effortless and transparent comparison shopping process that saves customers working days and over 30% in premiums every year. Visit matic.com for more information.

SOURCE Matic

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