Study Overview - CNBC is conducting its 19th annual study to determine America's Top States for Business [1] - The study uses a methodology crafted in 2007, evaluating states based on 10 categories of competitiveness [2] - The weighting of these categories changes yearly based on what states emphasize in their marketing [2] Key Categories and Factors - Economy is the top-weighted category this year, reflecting economic anxiety and state finances [2][3] - Infrastructure is a significant factor, including sites, roads, bridges, and computing power [3][4] - Workforce remains a crucial consideration due to worker shortages [4] - Cost of doing business encompasses taxes, wages, and incentives [4] - Business friendliness includes how states support emerging industries like artificial intelligence [5] - Quality of life, technology and innovation, education, access to capital, and cost of living are also considered [5] Risks and Challenges - The study factors in risks from tariffs and federal budget cuts [3] - The reduction in federal research money impacts technology and innovation rankings [5] - High insurance costs are a factor affecting the cost of living [5] Upcoming Reveal - The top state for business will be revealed tomorrow morning on Worldwide Exchange and Squawkbox [6][7] - State rankings will be available at topstates.cnbc.com [7][8]

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]