Since 2019, many variables in the market have reshaped the insurance industry. Industry experts predict that the commercial insurance sector will experience trends like 2022. Also, there will be new trends that result in increased business costs.

But what does this have to do with my insurance premium prices rising?

As we all know, the economy has experienced significant inflation this past year. That caused a sharp increase in insurance costs. There are four main market developments that will affect your insurance premiums in 2023.

The Supply Chain:

Companies rely on a global supply chain that is still recovering from the impacts of COVID-19. This means that disruptions with shipping delays, raw materials, and labor shortages will impact operations. In addition, many consumers will experience this increased expense when insuring their property.

Insurance aims to make the insured whole after a loss. Decreased materials and increased costs make property insurance higher than in previous years. While many businesses have resumed normal operations, consumer demand continues to outweigh inventory. When supply is down, and demand is up, prices face an increase.

Labor Shortages: 

We can better explain this through an example. Let’s say your building suffers an accident and is a complete loss. Your insurance’s job is to make you whole again, which would mean rebuilding. But how do labor shortages affect this process? In the event of a loss, the time it takes to rebuild a building can cost double the amount because of the lack of labor. If the demand for labor is high, but staffing is limited, you and your insurance will pay more.

Catastrophic Losses:

In the past couple of years, the U.S. has been facing extreme temperatures, wildfires, flooding, and severe thunderstorms. Weather experts report that these weather patterns are the new standard. The frequency and severity of these weather events have more than doubled in the past three years. Each event exceeds a billion dollars paid out by carriers, resulting in higher insurance premiums.

Geopolitical Conflicts:

Unfortunately, the Ukraine conflict will continue to affect the United States. We will see an increase in the price of several commodities. These commodities include fertilizers, food products, and oil and gas. This is also tied back to the supply chain. Limited access to these resources when demand is high will cause a price surge.

Are there any other factors to worry about?

There are many factors that weren’t listed above. Below is a list of other factors that may affect the price of your insurance premium:

• The type of coverage you’re seeking
• The size of your business
• The industry you’re operating in
• The location of your business
• Your claims history
• Your current risk of management practices

Is there something I can do?

The market is undergoing many changes. Give one of our agents at SOGO Insurance a call to better understand how these trends affect your policy. Our agents can help you find ways to mitigate risk and lower your insurance premiums. Our knowledgeable agents can provide a market analysis to further assist you. Our agents can also remarket your current account to ensure you receive the best rate and coverage.

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As we become more digitally and technologically advanced as a society, we start to expect that service and convenience with all things. For example, the urge to eat dinner no longer involves going to the grocery store, shopping for items, coming home, and cooking. Now, at the click of a few buttons, you can hop on an app and order your food from your favorite restaurant delivered right to your front door. Likewise, shopping for gifts or groceries has become more accessible, with many offering curbside service when you order digitally. There is hardly anything left anymore that hasn’t been made more convenient by social media. So why shouldn’t the insurance industry keep up with the trends? 

You can expect to see industries across the board become more and more digital as time goes on. The COVID-19 pandemic opened a window of opportunity for companies to launch more convenient and user-friendly digital tools to help end-consumer quickly find what they want.

At SOGO Insurance, we believe in getting you the coverage you need for an affordable price, and we strive to bring you there as painlessly as possible. We have several digital tools, including our “Clickable Coverage” pages, where you can easily explore the types of insurance policies we offer. You can also follow us on our social media pages like Facebook for up-to-date office news and information about policies, insurance laws, safety tips, and links to helpful blogs. We understand that digital tools can inspire “FOMO” or “fear of missing out” on actual interaction with a person. Still, we promise that our digital tools and media will only be a piece of the puzzle when servicing our clients. We like to think of the worldwide move to digital as a helpful way to get to where you want to go. No matter where you decide to go, we hope you know that SOGO Insurance will be there for you, digitally and otherwise, to guide you along the way. 

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Make a Plan – First things first. Your safety and the safety of your family is a number one priority during any disaster. If something were to go wrong in the next five minutes, would you be ready to protect your family? Before tornado season begins, have a family meeting and discuss some important factors, like a keyword for emergencies to kick your family into gear. Plan a drill and practice using the keyword, and have everyone go to the designated safe spaces in your home. Time the event and practice to get it down pat. Make a list of things your family needs to do, including grabbing flashlights, batteries, snacks and water bottles  if you have little ones, and a radio if possible. 

Tie Down or Move Objects – Your backyard patio is likely bedazzled with furniture and plants that make your yard a beautiful and functional entertaining space, but tornado season calls for you to put all those outdoor decorations away, at least on nights of inclement weather. You can tie down furniture and umbrellas, or simply move them to the garage or shed. Plants will be torn to shreds if you leave them out, so plan to cover them or bring them in. Wind chimes, garden gnomes, even patio chairs should be put away. Outdoor pillows and pet water bowls should be brought inside. 

Board the Windows & Trim Trees – Time to make a trip to Home Depot for some boards and hedge trimmers. If you’re worried about your windows breaking during a major storm, you can board up windows with plywood. Be proactive and trim any majorly swaying branches so they don’t fly off in the crazy wind. Use that handy organics bin and stuff it with your clippings and place the bin in the garage during the storm. 

Prepare a Disaster Kit – It may seem a little overboard, unless you’ve crouched in the bathroom for hours during a tornado, to have a disaster kit prepared, but it only takes one time to have to experience that to make one realize it’s worth it. Especially if you have kids, you’re going to want to make the bathroom or under-the-stairs closet the most home-like place as possible so they don’t get scared. Pack a small Rubbermaid storage tub with small water bottles, miniature flashlights for each kid, snacks, and maybe a card game to distract from the scary situation. Towels, blankets, candles, a lighter, and pillows will help too. Act like you’re going to be in the closet for 24 hours and place all the items you’d need in there. Don’t forget the diaper bag for the baby and pet food if you have fur-creatures you love. 

While we can’t stop the weather from happening, we can be a little more prepared for it. Take our advice to heart and you’ll be set for the spring and summer against a dangerous situation. While you’re preventing major destruction, know that you can also count on your SOGO agent to help you get organized and covered when it comes to insurance. There are several ways to protect your assets, and we can help you narrow down what exactly is best for you. You wouldn’t go outside in the rain without an umbrella, so why go through life without insurance? Call us today for more information. 

In case you missed it: Check out “Four Types of Business Insurance You Don’t Want to Forget About” to make sure your business is protected from things that aren’t so random in a crazy time like this. 

The post Texas Tornado Prep appeared first on SOGO Insurance.

Don’t Be a Superhero – Listen, we know you’re an all-star at work and at home, but diving too deep into the waters of healthy eating can be dangerous too. Don’t set your expectations so high that you expect to go from eating carelessly to eating organic parsnips in one day. Take baby steps and take some time to really plan out how to pace yourself for what goes in the meal prep containers. If you load up on bland broccoli and unseasoned chicken breast too hard and fast, you’re going to burn out and will be more likely to find solace in an enchilada plate with extra cheese. 

Stock Up Ahead of Time – All that being said, find the correct balance of taking it easy on the change but also being prepared for the actual prepping portion of healthy meal prep. Have a jar of almond butter on standby for a last-minute apple slice addition. Grab some whole grains like quinoa and keep them in a glass jar for a quick quinoa + veggie salad addition. Keep healthy options nearby so you don’t end up reaching for the Oreos you have secretly stashed away from the kids. The more healthy options you have at your fingertips, the more likely you are to reach for them when you’re prepping in a pinch. 

Get and Stay Organized – Picture yourself on a Sunday afternoon, mentally prepared to get your meal prep on, when you realize all the meal prep containers are dirty or missing or broken. You panic a bit, and attempt to figure out how many glass bowls you can scrounge up for the job, but now your mojo is messed up and you’re ready to throw in the towel. If you get organized and stay organized, you’ll be ready to run at any moment, setting yourself up for a more successful situation. Keep your containers in an easy-to-access place in your kitchen, along with lids or plastic wrap nearby. Make it a point to wash your containers as soon as you are finished with them so you don’t find yourself with a pile in the sink. 

Keep Track of What You Like – There’s just no sense in continuing to torture yourself with meals you didn’t really care for, is there? Maybe the turkey taco salad you thought would taste just like your childhood favorite recipe didn’t quite hit the nail on the head. Crumple up that recipe and move on to something you did like, and keep that recipe at hand somewhere portable like your phone so that you can quickly grab ingredients while at the store without missing anything. The more you like the food you eat, the better your chances are that meal prepping will be your new favorite hobby. 

While you’re in the thick of taking care of your health, take some time to discuss life insurance policy options with our qualified agents. We know you have years upon years to go before it’s your time to cruise in the clouds, but now is the perfect time to prepare your life (like preparing your food!) and loved ones for anything that could happen. 

In case you missed it: Check out “Inside the HERO Program: TXDOT’s safety program for San Antonians” to find out how our streets are that much safer with a rescue team all for you in the unfortunate event of an accident or stalling situation. Find out how you can keep your checkbook protected with our auto insurance policy options too. 

The post How to Meal Prep 101: A Beginners Guide appeared first on SOGO Insurance.

The purpose of travel insurance is to protect yourself from unfortunate circumstances that can affect your travel plans. What does that mean? Well, if you fully intend to catch a flight somewhere, and you check in 24 hours in advance assuming everything is hunky dory, you may bump into an unforeseen event, such as a serious accident on the highway on your way to the airport that causes you to miss your flight. According to the airline carrier, you’re just a regular old no-show. It’s difficult to get a credit or refund in these circumstances, and you can understand why because the airlines would never be able to financially operate if they didn’t charge for seats that ended up empty because of you. But it wasn’t your fault, so how can you protect your wallet from being out hundreds of dollars? Travel insurance. 

What about, say, a worldwide pandemic? Think of the thousands upon thousands of Americans and people around the world that had trips years in advance. Family vacations, weddings, business trips and more were canceled because of the coronavirus outbreak, and many went unprotected because no one anticipated a worldwide pandemic. But that goes to show that you can’t always expect what’s headed your way. We’re not saying everything is as serious as a national crisis, but basic travel insurance can save you a huge headache if something does happen. 

During these uncertain times, we can thank coronavirus for at least making us figure out what’s really important to us. One day, things will get back to normal and all will be well again. If you were ever to finally be in a trip and something should happen to a loved one back home, you’d drop whatever you were doing and come home as quickly as possible. Having travel insurance can even help you when you’ve had to change your plans due to a medical emergency or even death. You’d never want anything like that to happen, or stop you from getting home if it did. Travel insurance can help you get home safely to your loved ones. 

You’ve likely spent a lot of time coordinating all of your future travels. Don’t add confusion or frustration to your life if those plans go astray. Secure a travel insurance policy with SOGO and protect your wallet, time, and peace of mind for your future travels. Bon voyage! 

In case you missed it: Check out “Tips & Tricks to Setting Up a Home Gym” to read some sound advice on how to set up a home gym if you’re trying to lose a few pounds in the new year! 

The post Why you should purchase Travel Insurance appeared first on SOGO Insurance.

Joining a gym during the coronavirus pandemic is a tricky situation, but there are plenty of other alternative ways to make healthier decisions to prolong your life. 

Consider Meeting a Nutritionist – You’ve likely heard conflicting advice on every diet imaginable, and maybe you’ve tried all of them. One way to get that cloud of confusion cleared up a bit is by scheduling an appointment with a nutritionist to share your goals. Maybe you hope to lose (or gain) a few pounds, or maybe you’re just hoping to feel more energetic. Your body is made differently than everyone else’s body, so it’s important that you get the advice of a professional to help narrow down your game plan. For example, the keto diet may work for most people, but for someone with existing high cholesterol or heart conditions might not want to have all-you-can-eat bacon and cheese until they can get their existing condition managed. Some health insurance plans will cover a visit with the nutritionist, so make a plan in the new year to get some clarity. 

Write It All Down – This may sound like a no-brainer, and even downright silly, but writing down everything you eat in a day can be extremely eye-opening. For some weight loss programs like Weight Watchers, writing down what you consume is a key factor, because it forces you to acknowledge the small little treats you may pick up along the way. One Hershey Kiss is just one little chocolate, but when you start to add up all the little candy breaks or cheat meals you have throughout the week, it can seriously add up. Purchase a small lined notebook, write the date at the top, and write down everything you eat, even if it’s just one bite of something with a high caloric value. Even if you don’t calculate down the exact calories you consume, you might just be surprised yourself with all the little extras you ate here and there, inspiring you to think hard about the next time you pick up a bite of something and if you really want to partake. 

Take Baby Steps – Small changes can help in a big way. Park a little bit further away from the grocery store entrance and walk at a bit of a faster pace. If you’re working remotely, take a brisk walk or bike ride in the neighborhood during your lunch break. The next time a fun holiday tune comes on your speaker, do an energetic holiday dance like no one’s watching and get a little bit out of breath. Just like food, even the little things count, so do what you can, when you can, and you’ll feel better about balancing everything out. 

Each of you is so important to us, and we know your family is important to you. Do what you can to protect them now while you’re here by securing a life insurance policy that makes sense for your family. We specialize in getting you maximum coverage for a reasonable price, so let us help you get fit and get insured this new year. Stay safe and healthy and we’ll see you in 2021! 

In case you missed it: Our “Last Minute Gift Ideas” post has got plenty of ideas for holiday and new year gifts for any last-minute trips you’re making to drop off well wishes. Remember to wear your mask, wave from a distance, and be careful wherever you go and whatever you give this season. 

The post A New Year means a New Healthy Life appeared first on SOGO Insurance.

Make a plan

It’s always good to make a family communication plan. This can involve your family members to have important phone numbers and addresses written down or memorized. Be sure to store all important documents (birth certificates, insurance policies, health records, etc) within a waterproof case. Always have an easily accessible designated location to store all of your emergency supplies in the event of an evacuation so you can quickly grab it and go.

Make an Emergency Kit

Pack these essential basic supplies within your water-proof kit.

• Water – one gallon of water per person per day for at least three days, for drinking and sanitation
• Food – at least a three-day supply of non-perishable food
• Flashlight
• First aid kit
• Extra batteries
• Personal sanitation products
• Wrench or pliers to turn off utilities
• Manual can opener for food
• Cell phone with chargers and a backup battery. A portable charger helps as well.

Additional Emergency Supplies

Consider some of these items in your kit based on your family’s individual needs.

• Prescription medications
• Non-prescription medications (pain relievers, antacids, etc.)
• Glasses and contact lense solution
• Infant formula, bottles, diapers, wipes, diaper rash cream
• Pet food and extra water for your pet
• Cash or traveler’s checks
• Jackets, blankets, and heating pads to keep warm
• Change of clothes
• Matches in a waterproof container
• Feminine supplies and personal hygiene items
• Paper and pencil
• Books, games, puzzles or other activities for children

Regardless of the type of disaster, being prepared will greatly help with you and your family’s safety, security, and comfort.

The post Being Prepared In An Emergency appeared first on SOGO Insurance.

Deductibles serve a dual purpose: They save the insurance company money (including the administrative cost of processing small claims) and may help keep your premium costs lower.

Choosing the Right Deductible Amount

Generally speaking, the trade-off between deductible levels and insurance premiums is simple: The higher the deductible, the lower the cost of insurance. Conversely, the lower the deductible, the higher the cost of insurance.

Deciding how to make that trade-off is a function of math and your own comfort level with higher out-of-pocket costs if you choose a higher deductible.

Only you can decide if saving $65 a year in premiums for a deductible that is $500 rather than $200 is worth it to you. You may find that the relationship between deductible amount and premium cost is different depending upon the type of insurance. For instance, the savings with a higher deductible may be significant with auto insurance, but much less so with homeowners insurance.

Not only will this relationship between deductibles and premiums differ based on insurance type, but it may differ based upon other factors, such as your age or the value of your car, for example.

When shopping for insurance, you should always ask your insurance agent what the premium costs are at each of the available deductible levels. Knowing that information may help you make a sound decision regarding your coverage.

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In fact, according to a study conducted by LIMRA, which closely follows life insurance trends, less than half of U.S. households say they have individual life insurance coverage, and 40% of Americans say they need more coverage. (1)

Recognizing the role life insurance can play in your family finances is an important first step. A critical second step is determining how much life insurance you may need.

Rule of Thumb

One widely followed rule of thumb for estimating a person’s insurance needs is based on income. Some will say a person needs a life insurance policy that is five times his or her annual income. Others recommend up to ten times annual income. But if you are looking for a more accurate estimate, consider completing a “DNA test.” A DNA test is a Detailed Needs Analysis that takes into account a wide range of financial commitments to help better estimate insurance needs.

The first step is to add up needs and obligations.

Short Term Needs

Which funds will need to be available for final expenses, such as a funeral, final medical bills and any outstanding debts, such as credit cards or personal loans? How much to make available for short-term needs will depend on your individual situation.

Long Term Needs

How much will it cost to maintain your family’s standard of living? How much is spent on necessities like housing, food and clothing? Also, consider factoring in expenses such as travel and entertainment. Answering the question, “What would it cost per year to maintain this lifestyle?” is good place to start.

New Obligations

What additional expenses may arise in the future? What family consideration will need to be addressed, especially if there are young children? Will aging parents need some kind of support? How about college costs? Factoring in potential new obligations allows for a more accurate picture of ongoing financial needs.

Next, subtract all current assets available.

Liquid Assets

Any assets that can be redeemed quickly and for a predictable price are considered liquid. Generally, houses and cars are not considered liquid assets since they may require time to sell.

Also, remember that selling a home or a car may adjust a family’s current standard of living.
Needs and obligations — minus liquid assets — can help you get a better idea about the amount of life insurance coverage you may need. While this exercise is a good start to understanding your insurance needs, a more detailed review may be necessary to better assess your situation.

LIMRA, 2016

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