Why the new model?
The factors driving this new model are complex, but the simple version of the story is this: Society is changing, and community organizations are operating in an environment where losses are more frequent and more severe. These changes have been driving up insurance costs for all of our customers, even though some customers are more exposed to these changes than others.
What does the new model mean for me?
Rather than raising rates for all customers, Redwoods' new model is designed to prioritize adequacy and sustainability of each customer's price according to their unique circumstances. The majority of our customers are, broadly speaking, already adequately priced. As a result, these customers will receive either a slight decrease, will stay flat, or they will receive only a modest increase.
For the small group of our customers—about 12%—who are not adequately priced, insurance costs will be increasing substantially. This is not a value judgment on your organization's practices, but rather it's a reflection that you are on the frontlines of the trends we are seeing. This means your cost of risk is increasing and your insurance price has not yet fully reflected this new reality.
What you can expect from us next
In all cases, we're going to be reaching out as soon as we can to provide as much transparency and predictability as possible. If you're renewing within the next 90 days, you'll be hearing from us in the very near future, if you haven't already.
For all customers, and your brokers, we recognize that insurance costs are an important factor of budgeting—and budgeting is critical for delivering on your mission. So please do not hesitate to reach out to your underwriting or consulting contact and they will be able to work with you to get an indication of where things are likely to land.
We appreciate the work you do to create safe communities for all. The changes we are making now will allow us to do even more to support you in those efforts.