| You're probably being non-renewed because the insurance company has lost it's shirt on policies with similar risk characteristics as yours. Most insurance companies work off of 4 main revenue areas: Claims, Commissions, Expenses & Profits.
Companies expect to have approximately the following breakup of the revenue:
Claims - 60%
Commissions - 20%
Expenses - 10%
Profits - 10%
But in most companies, the claims far exceed 60%(due to litigation and poor underwriting/auditing), which cause companies to go belly up. The average payment from insurance companies in 2004 was $1.16 for every $1.00 it brought in. The only way companies were able to survive was by using the interest it made on it's investments. Therefore insurance companies are reviewing policies to nonrenew risk that are outside their appetite range. While you may think that insurance companies are ripping you off, consider each consumer having to pay each fine. If you accidentally hit a pedestrian, medical bills alone could be in excess of $100,000. Keeping all of us solvent is what insurance companies do. There are alternatives if you have trouble finding a carrier. The non-admitted market(or surplus lines) will be able to offer a policy, but at an increased premium. Hope this helps.
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