But catastrophic events are broken up over 20 years, minimizing the expense from any one storm. It's too early to say whether one storm will cause rates to go up. It doesn't happen that quickly. Insurers also set rates based on variables like the cost and location of the property, health-care costs, building materials costs, and the inflation rate. We don't all of a sudden see an increase in rates as a result of something that's out of all of our control.
Some major catastrophes do drive increases in premiums.
The 1994 Northridge, Calif., earthquake was nearly as disruptive to the insurance industry. But analysts say that type of event is extremely rare. Rates do not increase due to a single event. It's due to cumulative events. Associated Press content is Copyrighted by The Associated Press.