Are Rising Insurance Premiums Good For Investors?


If the first quarter, insurers reported increases in their insurance premiums as a means to offset some losses from higher claims. American International Group reported a 6% increase in their commercial lines alone, while Allstate reported a 2.5% growth in written premiums due in part to higher rates. But should investors be happy that insurers are increasing their premiums?

In the video below, Motley Fool contributor Jessica Alling discusses why insurers are raising their rates, why this may be a good thing, and how investors should look at the insurers going forward.

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Fool contributor Jessica Alling has no position in any stocks mentioned -- you can contact her here. The Motley Fool recommends American International Group. The Motley Fool owns shares of American International Group and has the following options: Long Jan 2014 $25 Calls on American International Group. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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