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Expect Insurance to Cost You More in 2012

Why will insurance cost you more next year? To protect themselves from catastrophic losses, insurance companies buy insurance from other insurance companies. This is known as reinsurance.

For the first 11 months of 2011, reinsurance companies paid out approximately $1.09 for every $1 they took in. Although nine cents doesn’t seem like that big of a deal, consider the billions of dollars that reinsurance companies pay out each year.

To make up for this loss, E. R. Munro and Company predicts that reinsurance companies will have to raise their rates to insurance companies across the nation.

Insurance companies, in turn, have to find the money to pay for these increased rates. This typically means higher rates passed on to consumers and businesses.

For more information on insurance, contact E. R. Munro and Company at 1-877-376-8676.