America's Top States for Business 2025: Rising insurance costs

Insurance Cost Trends - Insurance costs are rising nationwide, reflecting increased risk and more frequent billion-dollar disasters [5] - California's insurance increases are not the highest in the nation; Louisiana holds that distinction, followed by Iowa, Hawaii, and Minnesota [4] - Insurify projects an average increase of 21% in California insurance rates this year [3] Impact on Business and Living Costs - Insurance costs are factored into the cost of living category in CNBC's America's Top States for Business study [6][8] - Commercial insurance is also factored into the cost of doing business category [8] - Rising insurance costs are becoming a significant factor in the cost of living, particularly in states like California [5] California Insurance Market - State Farm, California's largest insurer, received approval for a 17% emergency rate hike and is seeking an additional 13%, totaling 30% [2] - In Southern California, despite past destruction, people are obtaining insurance, albeit at higher prices [2] - Consumers are now more accepting of rate increases, prioritizing policy renewal over cost complaints [3] Regulatory and Climate Risk Factors - Insurance companies are heavily regulated from state to state, causing variations in insurance costs [9] - Climate risk and the increasing costs of replacing structures are contributing to higher insurance costs [9]