Sean Andrade was recently quoted in the San Fernando Valley Business Journal article, “Farmers Lays Off 369 at HQ as Sector Retrenches,” which reported on the recent layoffs at Farmers Insurance. “Essentially, I think for insurance companies, since the beginning of time, they like things to stay the same. They like the landscape to be stable and predictable,” Sean said. “I think in the last three to five years or so there have been some major changes worldwide – and obviously in the U.S. and Southern California – that have had a major impact.”

Sean explained how insurers model their businesses on predictable issues/payouts and recently, payouts have exceeded expectations. “Some of that is the climate changes and the increased risk for fires, but the pandemic and all kinds of logistical concerns with shipping have really driven up replacement costs as well,” he said. “It costs more to get things done in general, so they’re seeing a lot of increases on their costs side with claims, and also just an increase in the number of claims.”

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