What does it mean to reinsure?  Better yet what does reinsurance mean to Etler-Kettenacker Agency’s customers and for that matter any purchaser of personal and commercial insurance?  Insurance simply means to spread risk from one person to many people via a contract.  So what happens when an insurance company experiences a catastrophic loss?  Insurance companies have larger insurance companies that reinsure companies such as Progressive, Grange and Motorists Mutual.


Now, what does this mean to you as a consumer?  Whenever there is a catastrophic loss such as the hurricane that hit New Jersey and New York, the tornado in Joplin, Missouri and even tsunamis overseas your personal or commercial insurance rates may rise regardless of where you live.  Why?  Because your insurance company may have to turn to their reinsurer to cover the catastrophic loss.  Recently, people have been noticing their insurance rates rise.  This is largely due to the recent catastrophes therefore your insurance carrier must turn to their reinsurer to again, cover these losses.  Then the risk is transferred back to the consumer.


How can Etler-Kettenacker Agency help you reduce your rate?  The Etler-Kettenacker Agency can shop your personal or commercial plan with a different company that may not be as adversely affected by the catastrophe.  Or, the staff at Etler-Kettenacker Agency can look for ways to combine coverage, raise deductibles temporarily until the reinsurer is made whole again after the catastrophe has occurred.  For a free personal or commercial quote or policy review click here to have an Etler-Kettenacker Agency customer service representative contact you to discuss your options.


Like many things in life catastrophes and insurance has a domino effect.  To sum it up catastrophes affect your insurance company and thus affect the reinsurer by requiring the reinsurer to pay monies to your insurance company to cover the large loss.  This ultimately raises your personal and commercial insurance rates.  Natural disasters unfortunately can’t be avoided but combating them is possible.  Shopping your insurance rates or consulting with your agent to find ways to reduce your rate is a great line of defense.  To speak to one of Etler-Kettenacker Agency’s knowledgeable customer services representative click here.