When Eric George took the role as President of the Insurance Association of Connecticut (IAC) in 2014, it was an exciting opportunity for someone who had spent many years as a lawyer, lobbyist, and public policy advocate at the State Capitol.
“Connecticut’s insurance industry is renowned, our state’s signature industry for more than a century, and to advocate for these companies is an amazing opportunity,” Mr. George said. “But I thought even more could be done. We should also be advocating for policyholders, the ones who purchase home, auto, and life policies. It’s important to talk to lawmakers and other decision-makers about what consumers need to know and where they could use more clarity about their coverage.”
“The idea of educating policyholders, helping them understand ways they could both enhance their coverage and possibly reduce their rates, is equally rewarding,” Mr. George continued. “People often have many questions about their insurance policies, and we felt we could help them better understand what they have and what it costs.”
The challenge, Mr. George said, is that so many consumers simply don’t know what’s in their policies. That’s where the IAC, while continuing to advocate for insurance companies doing business in Connecticut, decided to expand its education efforts so that policyholders could better understand what they were paying for and explore ways to reduce their rates.
“We are an industry whose prices are approved by state regulators, so what insurers charge for premiums comes with a healthy degree of government oversight.” he said. “And hopefully, we can also offer some practical advice on ways to bring those costs down. While that is traditionally the role of insurance agents and brokers, as it should be, our industry saw real value in helping educate the public as well.”
Why have rates gone up?
“First, there’s the basic reality that cars and homes are worth more today than ever before,” Mr. George said. “Insuring them can come at a higher cost because what’s being insured is so much more valuable. That’s a fact, but it’s also one where opportunities for savings can still be found.”
Mr. George pointed to one of the biggest drivers of rising rates – inflation. The costs of goods and services have increased, and those increased costs are reflected in insurance premiums.
What can consumers do?
“Let’s start with the most straightforward advice: drive safely, and take care of your health and safety, your home and your property,” Mr. George said. “When people drive safely, fewer claims are filed and rates can come down. The same goes for the home. Keeping it in good condition not only helps maintain property values, but it also reduces risk, and your rates can reflect that. Take care of what you have, and good things tend to follow.”
There are also other concrete steps people can take to find savings.
“Bundling is a great option, and one that people should talk to their agents or brokers about. Combining policies like homeowners, auto, umbrella coverage, and other coverages can lead to real savings,” he said. “Telematics is another option worth exploring, particularly for auto insurance. It involves placing a device in your car that allows the insurance company to monitor your driving habits, and for safe drivers, it can mean meaningfully lower rates.”
He also pointed to the idea of increasing deductibles on auto and homeowners’ policies.
“Having a higher deductible can save you money in the long run by reducing your premiums. Deductibles only come into play when a claim is made, which for most people is infrequent. If you’re a safe driver with a well-maintained home and you’re not filing many claims, raising your auto deductible from $200 to $1,000, or your homeowner’s deductible from $1,000 to $2,000, will likely translate to lower premiums.”
Mr. George emphasized that while the IAC wants consumers to be satisfied with their policies and achieve real savings, the specifics are best worked out between policyholders and their agents.
“Our guidance is general, rooted in broad knowledge of insurance. The particulars are exactly what agents and brokers are there for, because they can show you precisely what kinds of savings are achievable and how to get there,” Mr. George said.
Others within the industry agree. Personal policy decisions need to be made on an individual basis, but when consumers take care of their homes and property, everyone benefits.
Overall, industry officials say they want to see satisfied consumers, and they’re hopeful that some of this general guidance can deliver real savings for those who pursue it.
“Insurance is Connecticut’s signature industry, creating tens of thousands of jobs and supporting people through some of the hardest moments of their lives,” Mr. George said. “Our primary focus is advocating for the state’s insurance companies, but nothing happens in a vacuum. Satisfied customers are something we all care deeply about.”
