InvestorQ : Why are fire insurance rates increasing suddenly?
Ashoka Patkar made post

Why are fire insurance rates increasing suddenly?

nishi Shah answered.
3 years ago

Yes, it is true that fire insurance rates are increasing. News reports suggest premiums for fire insurance have risen by almost 30-35% over the past year as high claims have led to underwriting losses for insurers.

Fire insurance covers properties (large and small commercial) against fire and related perils and fire-related losses are covered depending on the type of products stored in the property. The rates are worked out basis the type of goods and risks involved. Properties holding highly inflammable product like gas, wires or oil attract more premium.

According to a head of underwriting at a general insurance firm, "We have been forced to increase rates as the fire portfolio has been consistently loss-making. And the premiums will only go up from here.”