In a recent government meeting, discussions centered around the rising costs of property insurance and the factors contributing to these increases. A key point raised was the impact of regulatory costs, which are often absorbed into inflation metrics.

One senator questioned how much of the high property costs can be attributed to market distortions, such as pricing caps. In response, it was noted that regulatory costs, driven by government mandates, significantly influence insurance premiums. These costs are frequently overlooked in traditional economic assessments due to hedonic adjustments, which tend to disregard them.

The analysis presented indicated that approximately 90% of the surge in insurance premiums over recent years can be traced back to a combination of government actions, including inadequate responses to criminal activity, inflation, and regulatory expenses. This highlights the complex interplay between government policy and market dynamics in shaping the financial landscape for property owners.