Solutions to homeowners’ insurance challenges? That’s what WOWS Insurance Services is focused on. It’s actually why the company was founded.
And there’s no doubt that there are a myriad of questions, concerns and challenges now, especially in California, but also nationwide.
When WOWS Insurance launched last year, it was with the intent to resolve a number of serious issues.
Homeowners across the country, especially in wildfire-prone states, have seen their premiums skyrocket, their policies cancelled or, in some cases, they are challenged to find adequate and affordable coverage.
Insurers are feeling the pressure, too. For years, they relied on traditional risk models to calculate premiums, issue policies, and assume predictable loss patterns. The landscape has changed. Rising claims, extreme weather events, and economic pressures are pushing the industry to a breaking point.
If we look at the years between 2013 and 2022, it’s clear that it’s becoming harder for insurers to stay profitable. During that period, insurers have had a combined ratio of 108, which means they spent 108% of their premiums. They’re paying out more than they’re taking in. That’s a dangerous thing. And unsustainable. They cannot stay in business long doing this. It is why premiums are increasing and insurers are exiting some market areas.
The insurance industry has been basically going through Einstein’s theory of insanity, doing the same things over and over again and expecting a different result. And with all the changes from 2013 to now, when carriers say they have a 108% loss ratio, I would estimate that’s on the low side. Carriers are definitely losing money.
When insurance carriers lose money, they pull out. That’s why they have done historic cancellations throughout California.
And what’s happening in the housing market as insurance becomes either too expensive or difficult to obtain?
What’s the solution?
I like to believe that WOWS is leading the charge to bring new options to California’s homeowners.
In the past few months, WOWS Insurance Services has announced partnerships with several other insurance carriers to expand the coverage available to California homeowners.
It’s exciting news for the industry. And for homeowners, too. These collaborations will provide options and solutions for high-risk, luxury homes and mid-level properties in California valued at under $10 million.
These partnerships offer California residents new options and choices for property coverage.
Through these partnerships, we are offering a wider range of coverage options, evaluating the risk throughout the quoting process, creating innovative solutions that address the evolving challenges in the California insurance market, and delivering top-notch claims management services.
This will positively impact California’s insurance market as new and tailored programs, addressing seasonal treatments and risk management initiatives, will be introduced. By working with high-value homeowners, collaborating on risk management, we’ll implement effective risk mitigation strategies.
Soon, geographic reach will be expanded, extending services to other states experiencing similar challenges with property coverage.
These options are in addition to WOWS Insurance Services initial offerings. All of these policies are fully transferable from home sellers to buyers, something that numerous realtors believe makes the policy an asset of the property. This is an industry first, and major California realtors have said that being in the program could boost a property’s value.
The cost of insurance is increasing and, in some cases, pricing homeowners out. Besides putting people’s homes at risk in the event of a fire or other damaging event, this jeopardizes mortgages where having coverage is a condition of the loan.
Learn more about WOWS Insurance Services at https://wowsinsurance.com/
Read the full feature on WOWS Insurance in top business magazine IMPAAKT now!
