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Markets are settling into holiday mode, with stock futures slightly down on the last full trading day before Christmas. Here’s where things stand today: * Nasdaq-100: +0.37% * S&P 500: +0.04% (flat) * Dow Jones: -0.22% On Friday, the S&P 500 rose 1.1%, recovering
Quantum computing stocks are taking off in 2024. Is this the start of something big? Let’s take a closer look Google’s Chip Changes the Game Google’s new Willow chip, a 105-qubit processor, hit a big milestone: * Fixed Errors: It solved a 30-year problem by cutting down error
Government surveys that track the economy are failing. Budgets are shrinking, people are skipping surveys, and economic data we rely on is becoming less trustworthy. This is a big deal—because when the numbers are wrong, decisions that affect markets, businesses, and everyday life go wrong, too. Here’s what’
The S&P 500 Value Index just dropped 3.7%, marking its longest losing streak on record. Meanwhile, Bitcoin smashed past the $100,000 mark, and the Nasdaq climbed to 20,000. To me, it seems that value stocks have been left in the dust, and investors chasing bigger
Almost $10 billion has poured into Bitcoin ETFs since the US election, pushing Bitcoin past the $100,000 mark for the first time. The momentum is crazy, with Bitcoin posting its best winning streak since 2021. With investors pouring in, knowing the risks are more important than ever. Bitcoin’s
Why are your insurance premiums skyrocketing, and what can you do about it? Spoiler: Not much. But here’s why.
Home insurers are pushing for big rate increases and weakened consumer protections, and it seems they're getting what they ask for.
State regulators across the US appear to be submitting to industry demands due to fears that insurers will pack up and exit their state, leaving residents with fewer coverage options.
The pain for home and auto insurance customers is quickly becoming investors' gain. Insurance giants' shares and profits are hitting records, thanks in part to those steep rate hikes recently.
Check out this chart showing the price performance of Progressive, Allstate, and Travelers since October 2023 👇
So, why are these insurance companies making such high profits? The industrywide push to raise prices follows a long run of underwriting losses after the pandemic. In hindsight, customers got a great deal for most of the period after the Covid lockdown ended.
During the pandemic, auto insurers raked in outsized profits as people stayed at home and got in fewer car crashes.
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Only 1 of the top 10 auto insurers, State Farm, cut rates by more than 10% in the two years through 2021.
Since then, the 10 companies—Allstate, American Family Insurance, Farmers Insurance, Geico, Liberty Mutual, Nationwide, Progressive, State Farm, Travelers, and USAA—have each won regulatory approval to boost auto-insurance rates by more than 20%, according to an S&P report this month.
In 16 states, the two-year increase topped 30%, including jumps of 45.5% in Texas and 39% in Ohio.
This means your wallet is getting hit harder, while investors laugh all the way to the bank!
Why are state regulators allowing such large rate increases? One factor is the recent willingness of regulators to allow these increases.
Insurers are bullying states. The companies are basically saying to state regulators, 'We can wreak havoc on your economy if you don’t play ball with us.' Crazy, right?
During the pandemic, insurance companies made huge profits because people drove less, with fewer accidents. However, as the world returned to normal, the insurers dealt with losses from paying out more claims, causing them to increase rates again.
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The national average cost for a full-coverage policy increased to $2,019 per year in 2024, representing 2.6% of median income.
For us consumers, this means fewer coverage options and higher premiums. With the steep rate hikes, consumers are bearing the financial burden. Wonderful, isn't it?
How long do you think this trend will continue? Perhaps until interest rates cut back we'll see pressure ease from insurance companies in the future.