 |
|
|
|||||
If your home insurance rate has spiked lately, youre not alone. And President Trumps policies could make it even more expensive. Since 2021, at least 6 million policyholders across the country have seen rate hikes to their property insurance policies, according to a new report from the environmental advocacy group Climate Power. Insurers have also canceled at least 1.4 million policies in that time. One big reason is the worsening climate crisis, which is driving more and more instances of extreme weather. Inflation, labor shortages, and supply chain issues are also factors, as they drive up the costs to rebuild a home. The Trump administrations policies may be exacerbating this crisis. Trumps tariffs could make home insurance prices rise 38% faster, one insurance agency estimated. And since beginning his second term in office, Trump has also gutted the countrys ability to forecast extreme weather, as well as the governments ability to respond to disasters. Less information means insurance companies may raise premiums even more, or pull out of high-risk areas altogether. Climate change and the home insurance crisis When it comes to rate hikes, cancellations, and the cessation of new business, insurers attribute more than one in four of those actions to extreme weather or climate disasters, according to Climate Power. In Louisiana in 2023, Citizens Property Insurance customers saw a 63% rate increase on their home insurance. That move affected more than 100,000 homeowners who were forced to take out policies with Citizens after Hurricane Laura and other recent storms, The Times-Picayune reported, because other insurance companies went insolvent or left the state because of its disaster risks. And more companies are leaving especially risky states, or halting their coverage. State Farm and Allstate stopped insuring homes in California because of climate risk. And Farmers and Progressive have scaled back their coverage in Florida. Its not just coastal states at risk, however. While Florida and California are the two top states impacted by insurance cancellations, per Climate Powers report, the top 10 list also includes Iowa, Oklahoma, and Oregon. Cost-of-living and affordability issues don’t hurt profits At the same time that Americans are facing higher premiums or being left without any coverage, insurance companies are still profitable and paying their CEOs millions. In 2024, 22 publicly traded insurance companies reported profits that exceeded $36 billion combined, per Climate Power. Together, they gave their CEOs more than $220 million. One example is Allstate, which reported $4.7 billion in profits and compensated CEO Thomas Wilson with $26.7 million in 2024. Thats the same year the company raised rates for 350,000 California policyholders by 34%. Insurance companies are raking in profits, paying CEOs millions, but still canceling policies and hiking rates, which is leaving Americansespecially those facing extreme weatherhung up to dry, said Lizzy Ganssle, Climate Power’s national press secretary. No help from Trump The property insurance industry has also supported Trump to the tune of more than $1.3 million for his presidential campaigns, through donations from individuals and political action committees (PACs). But as Climate Power points out in its report, Trump isnt addressing the insurance crisis issueand may actually be making it worse. Trumps tariffs, cuts to disaster relief, and elimination of Federal Emergency Management Agency (FEMA) programs all mean that homeowners will have to bear more of the burden when it comes to extreme weather events and the cost of rebuilding their homes. Many Americans are already dealing with a cost-of-living crisis and struggling to pay for groceries, housing, and skyrocketing energy bills. As they become more pessimistic about the economy, though, Trump has called affordability issues a con job and a fake narrative. Climate Power hopes its report helps Americans to understand the scope of the insurance problem, as well as why their prices may continue to rise. Its very important for us that Americans understand the impacts that extreme weather is having on their real lives, Ganssle said. Its also important for us that folks understand that Donald Trump is doing nothing to address this issue.
Category:
E-Commerce
Google faces fresh antitrust scrutiny from European Union regulators, who opened an investigation Tuesday into the company’s use of online content for its artificial intelligence models and services. The latest regulatory flexing by the European Commission in Brussels risks antagonizing President Donald Trump’s administration, though EU officials denied they were singling out American Big Tech companies. The European Commission, which is the 27-nation bloc’s top antitrust enforcer, said it’s examining whether Google has breached competition rules through its use of content from web publishers and material uploaded to YouTube for AI purposes. Regulators are concerned that Google has given itself an unfair advantage by using content for two search services, AI Overviews and AI Mode, without paying publishers and content creators or letting them opt out. AI Overviews are automatically generated summaries that appear at the top of its traditional search results, while AI Mode provides chatbot-style answers to search queries. They’re also examining whether Google uses videos uploaded to YouTube under similar conditions to train its generative AI models, while shutting out rival AI model developers. Officials said they’re seeking to determine whether Google gained an edge over AI rivals by imposing unfair terms and conditions, or giving itself privileged access to content. This complaint risks stifling innovation in a market that is more competitive than ever,” Google said in a statement. Europeans deserve to benefit from the latest technologies, and we will continue to work closely with the news and creative industries as they transition to the AI era. The Commission, which is the bloc’s executive arm, is carrying out the investigation under the EU’s longstanding competition regulations, rather than its newer Digital Markets Act that was drawn up to prevent Big Tech companies from monopolizing online markets. “AI is bringing remarkable innovation and many benefits for people and businesses across Europe, but this progress cannot come at the expense of the principles at the heart of our societies,” Teresa Ribera, the Commissions vice president overseeing competition affairs, said in a statement. Last week the Commission opened an antitrust investigation into WhatsApp’s AI policy. It also fined Elon Musk’s social media platform X 120 million euros ($140 million) for breaching digital regulations, which drew complaints from Trump officials that American companies were being targeted. The Commission is agnostic about the nationality of companies it is investigating, spokeswoman Arianna Podesta said. Of course, the sole focus of our antitrust investigations is possible illegal behavior and the harm that this could bring to competition and consumers within the European Union, Podesta told reporters at a regular briefing in Brussels. Google will have the chance to reply to the concerns, and the Commission has also informed U.S. authorities about the investigation, she said. Brussels has no deadline to wrap up the case, which could result in sanctions including a fine worth up to 10% of the companys annual global revenue. By Kelvin Chan, AP business writer Associated Press writer Sam McNeil contributed to this report.
Category:
E-Commerce
Some bad news for Americans with student loans. The Trump administration’s Department of Education announced on Tuesday that millions of borrowers who are enrolled in the Saving on a Valuable Education (SAVE) plan may soon need to select a new repayment plan, part of a settlement with the state of Missouri. If approved, the move could force millions of Americans to repay their federal student loans, ending the current pause in payments and interest aimed at student debt relief, a holdover from the Biden administration. What is Saving on a Valuable Education plan, or SAVE? SAVE is a popular federal student loan income-driven repayment plan (IDR), which caps, or puts a maximum limit, “on how much borrowers must may monthly federal student loan bills at a portion of their income, and it forgives remaining debt after a set number of payments, according to Nerd Wallet. Why is SAVE ending now? SAVE has been in legal limbo since February 2025, when the 8th U.S. Circuit Court of Appeals decided the Biden administration was not authorized to establish the SAVE program. President Donald Trumps One Big Beautiful Bill Act (OBBBA), which he signed into law this summer, did not renew student loan forgiveness, which is set to expire at the end of this year, which means student loans are eligible to be taxed, once again. As Mike Pierce, executive director of the Student Borrower Protection Center (SBPC), previously told Fast Company: “There are two things that student loan borrowers need to know: There are changes in the way student debt is taxed, and the other is Congress didnt extend tax-free student loan forgiveness.” More than 7.6 million student loan borrowers are in SAVE forbearance, according to Education Department as reported by CNBC. Previously interest-free, SAVE borrower accounts resumed accruing taxes on August 1, according to Nerd Wallet.
Category:
E-Commerce
All news |
||||||||||||||||||
|
||||||||||||||||||