AUMA’s Insurance and Risk team has just returned from meetings with international underwriters. The message they received was clear: insurance premiums are going to increase across the market and around the world.
“Insurers and their underwriters are reporting losses over the last couple of years and increased risks ahead, so they’re adjusting their premiums to ensure their viability,” said our Chief Operating Officer, Steve Kruska. “MUNIX clients will be insulated from these price shocks because we cushion against them.”
Steve went on to say that some insurers are increasing their premiums by between 80% and 100% while simultaneously reducing the limits on claims. MUNIX clients will not see drastic changes to their policies.
MUNIX, AUMA’s reciprocal insurance exchange, was formed in 2002 to serve the insurance needs of its members. Created at a time when insurers had abandoned municipalities and associated non-profits, MUNIX is owned by you—the subscribers.
MUNIX subscribers can contribute to even better cushioning by engaging in risk management programs. The insurers see these programs as helping to reduce risk, which means we are able to pass along much better insurance pricing.
Work continues on policy renewals for 2020. We will continue to keep our clients informed of progress.