CNBC's Scott Cohn joins 'Squawk Box' with his latest report on America's Top States for Business 2025.

New York

CNBC's upcoming report on America's top states for business underscores the increasing influence of insurance costs on state rankings. Insurance premiums are rising nationwide, with California seeing an average projected increase of 21 percent and Louisiana experiencing the highest rate hikes. The report notes that insurance is now a critical factor in both the cost of living and the cost of doing business, reflecting growing risks from disasters and higher replacement costs for structures.

The study incorporates more detailed data on both homeowners and commercial insurance this year, acknowledging that these costs are becoming a decisive factor for businesses and residents alike. Experts suggest that the trend of rising premiums is likely to continue, driven by increased climate risk and the higher costs associated with rebuilding after disasters. The impact of insurance costs varies significantly between states due to differing regulations and risk profiles.

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

We are just about a week away from revealing America's top states for business for 2025 in CNBC's annual study. Once again this year the cost of insurance factors into our rankings. Scott Cohen joins us from the epicenter of a national crisis in California. Scott. Good morning Melissa. We're in Pacific Palisades. 6,800 structures were destroyed here and 12 people died. Still a great deal of destruction but as you can see there is some rebuilding going on and critically here in Southern California people are getting insurance. Of course they are paying more for it. State Farm, the state's largest insurer, just won approval for a 17 percent emergency rate hike. It is asking for another 13 percent for a total of 30. Statewide the online insurance marketplace Insurify projects an increase of 21 percent on average in California this year but independent insurance agent Scott Wilk says all things considered people will take it. Early on in my career pre-insurance crisis if I had a customer's you know rate go up by five bucks a month I could be hearing about it and hearing complaints about it. Now people are just excited when their policy renews and it's still enforced. Of course insurance companies dropped a whole lot of people from their roles many of them before the wildfires in January. California's increases are not the highest in the nation. That distinction belongs to Louisiana as you can see then California followed by Iowa. Yes Iowa, Hawaii and Minnesota as insurance companies recalibrate their risk. It's not just a phenomenon in a few states we're seeing rising insurance costs all over and partly that's a reflection of rising risk. We've seen a sharp increase in the frequency of disasters that create over a billion dollars of damage. It still though varies quite a bit from state to state and has become a really important factor particularly here in California but in many other states in the cost of living. So we are factoring insurance into the cost of living category of America's top states for business this year. You can read all about that read about our study and see where your state ranks just about a week from now at topstates.cnbc.com. A week from tomorrow Melissa we will reveal America's top state for business. We love all those clues especially the diabolical ones but you seem to always stump us. In the report we mentioned that premiums across the board across the United States are rising and I'm wondering this is the first time that insurance cost is actually factoring into this ranking. It's that much of a decisive factor. We started factoring it in last year in the cost of living category we look at homeowners insurance and we have a lot more data on it this year. We also are factoring in commercial insurance and the cost of doing business category. It really has become an important factor in the cost of living in the cost of doing business and the experts are saying this isn't going away. This is something that as we continue to have have higher costs of replacing housing or structures and of course more climate risk that it becomes a bigger deal and the insurance companies are really trying to manage this and yet they're very heavily regulated from state to state so it really does vary and it's very interesting how it does vary from state to state.

Ukrainian President Volodymyr Zelenskyy said Kyiv will do "anything" to advance EU accession talks. Zelenskyy spoke alongside Danish Prime Minister Mette Frederiksen, President of the European Council António Costa and President of the European Commission Ursula von der Leyen.

Kyiv

Ukraine Invasion

Ukraine will do 'anything' to advance EU accession talks: Zelenskyy

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Washington

Global Tariffs

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Indonesian rescuers on Thursday (July 3) temporarily halted a search for 30 people still missing after a ferry carrying 65 people sank near the island of Bali with the loss of six lives, the national search and rescue agency said.

Gilimanuk

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Ochopee

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Tecoluca

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Manhattan

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Liverpool soccer player Diogo Jota has died aged 28, just weeks after marrying his childhood sweetheart. The footballer passed away in a car crash in northern Spain.

Madrid

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The Pentagon said that U.S. strikes 10 days ago had degraded Iran's nuclear program by up to two years, suggesting the U.S. military operation likely achieved its goals despite a far more cautious initial assessment that leaked to the public.

Tehran

Iran Strikes

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Days before his 90th birthday, the Dalai Lama announced the Gaden Phodrang Trust, a non-profit he founded, will have the sole authority to recognize his future reincarnation, but China insists it will choose the successor of the Tibetan spiritual leader.

Lhasa

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Bryan Kohberger changed his plea to guilty Wednesday for the 2022 murders of four University of Idaho students. CBS News national correspondent Carter Evans has more on the case.

Boise

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The Wisconsin Supreme Court struck down a state abortion law that was adopted in 1849 in a 4-3 landmark decision. CBS News' Shanelle Kaul reports.

Madison

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Paris

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Everglades

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Former criminology graduate student Bryan Kohberger has agreed to plead guilty to killing four Idaho college students in 2022, a move that would spare him the death penalty under a deal with prosecutors, ABC News reported on Monday (June 30).

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Thailand's Constitutional Court on Tuesday suspended Prime Minister Paetongtarn Shinawatra from duty pending a case seeking her dismissal, adding to mounting pressure on a government fighting for survival on multiple fronts.

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