Triple-I Launches Insurance Affordability Index to Provide State-by-State View of Insurance Costs and Market Conditions

Business Wire

New interactive tool examines affordability, availability and the underlying factors driving personal auto and homeowners insurance costs across the United States

MALVERN, Pa.--(BUSINESS WIRE)--
The Insurance Information Institute (Triple-I) today announced the launch of its Insurance Affordability Index, a new interactive resource designed to help consumers, policymakers and the media better understand how homeowners and personal auto insurance costs vary nationwide and the economic, risk and market factors driving those differences.

The Index measures insurance costs relative to household income in each state, combining the Insurance Research Council’s (IRC) established affordability methodology with Triple-I’s underwriting expertise and the latest available data. The result is a timely, state-by-state view of insurance affordability through 2025.

Nationally, the Index estimates personal auto insurance represents 1.7% of median household income, up 9% since 2020, while homeowners insurance represents 2.4%, up 24% over the same period. Those national figures, however, mask substantial differences among states driven by variations in risk, claims costs and market conditions.

“Insurance costs vary significantly across America, and for good reason: no two states carry the same catastrophe risk, legal environment or economic pressures,” said Sean Kevelighan, CEO of Triple-I. “The Affordability Index brings the data and cost drivers together in one place, making those differences understandable, not mysterious. It gives consumers, policymakers and the media a common set of facts and a clearer picture of what is shaping insurance costs in each state, helping inform decisions about how and where risks are greatest, how to build and how to better protect what matters most.”

The Insurance Affordability Index is designed to put premiums in context and recognizes that affordability alone does not tell the full story. Before exploring individual states, users can examine three factors that help explain the broader insurance environment:

Market health and availability: Indicators including residual market share, excess and surplus (E&S) market share, and regulatory rate-approval times help show whether private insurers are willing and able to write coverage in a market. For homeowners insurance, the map also identifies states facing the greatest availability pressure.
Replacement costs: The Index tracks changes in the costs of rebuilding homes and repairing vehicles, many components of which have risen faster than overall inflation since 2020.
Insurance and other household costs: Insurance’s share of household income is presented alongside other major expenses, including housing, food and transportation, putting insurance costs within the broader household budget.

“Insurance premiums are shaped by the underlying cost of claims,” said Pat Schmid, chief insurance officer at Triple-I and president of the IRC. “Inflation and rising prices to repair and replace homes and vehicles are significant factors across the country. Where legal system abuse or catastrophe exposure adds further pressure, premiums rise accordingly. When rates do not fully account for these underlying factors, market participation can shift, which may create availability challenges and greater reliance on residual markets. The Affordability Index brings these factors together to show what’s driving insurance affordability and market conditions in each state.”

An Interactive State-by-State View

At the center of the tool is an interactive U.S. map that users can toggle between personal auto and homeowners insurance. States are ranked based on average premium as a share of median household income and placed into five affordability tiers, ranging from most affordable to least affordable. Users can select an individual state to explore the factors behind its results. Each state page includes:

Premium-to-income trends: Five-year and two-year views showing how the state compares with the national benchmark.
Asset value comparisons: Insurance costs relative to home value for homeowners coverage and vehicle value for personal auto.
Cost-driver rankings: State rankings based on IRC research into the factors influencing insurance costs, including catastrophe exposure, claim frequency and severity, repair costs, expenses and claims litigation.
Location-specific risk information: Regional hazards contributing to a state’s results, such as flood exposure, storm patterns or congested traffic corridors.
Consumer mitigation actions: Practical steps residents can take to address risks identified in their state and potentially help reduce their insurance costs.

By bringing affordability, availability, underlying risk and market conditions together in one resource, the Triple-I Insurance Affordability Index provides consumers, policymakers and the media with a consistent framework for understanding why insurance costs differ among states and how affordability intersects with insurance availability, underlying risk and the broader cost of living.

Additional Resources

About the Insurance Information Institute (Triple-I)

Since 1960, the Insurance Information Institute (Triple-I®) has been the trusted voice of risk and insurance, delivering unique, data-driven insights to educate, elevate and connect consumers, industry professionals, policymakers, and the media. An affiliate of The Institutes, Triple-I represents a diverse membership accounting for nearly 50% of all U.S. property/casualty premiums written. Our members include mutual and stock companies, personal and commercial lines, primary insurers and reinsurers – serving regional, national and global markets.

About Insurance Research Council

The Insurance Research Council (IRC), affiliated with The Institutes, is an independent, nonprofit research organization supported by leading property and casualty insurance companies and associations. IRC provides timely and reliable research to all parties involved in public policy issues affecting insurance companies and their customers. IRC does not lobby or advocate legislative positions.

About The Institutes

The Institutes® are a not-for-profit dedicated to helping people and organizations succeed in the essential disciplines of risk management and insurance. Through numerous affiliated business units and brands, we educate, elevate, and connect students, professionals, and organizations by equipping them with the knowledge, skills, and collaboration they need to tackle the most complex risk management and insurance challenges. Backed by more than 115 years as a trusted knowledge partner, we empower people and organizations to create a more resilient world.