Last year when I got the escrow statement, I noticed my insurance went up a bit so I shopped and changed it.

You should receive a policy renewal document directly from your insurer that includes your estimated premiums. You should also receive an estimate property tax bill from your county. It is your responsibility to verify that the amounts shown on the escrow statement are correct (I'm guessing that last year, they weren't, hence the shortage). You shouldn't be learning about these changes from your escrow statement.

GIANT RED FLAG, the only reason your payment should go down is if your insurance goes down, your property tax goes down, or your PMI goes away. $2,800 / 24 months is $116.67, that's about how much you were underpaying your mortgage last year.

You should also be verifying that the correct amount gets paid to the correct party. One year my escrow cut a check in the amount of my property tax bill and sent that to my insurer. My insurer had to refund the overpayment back to me, and then I had to deposit that into my bank and make an escrow only payment to my mortgage company to avoid a shortage.

Actual helpful advice: the $400 a month increase is likely only there so that your balance will be high enough to make your largest payment (property tax on January 1st, maybe? You underpaid last year by about $1200-$1400. $400 in October plus $400 in November plus $400 in December gets you back up to where you should have been, had last year's payment been correct. If you pay that extra $400/mo for 12 months, then next year you'll likely have another escrow surplus. See if you can make a lump sum payment of the shortage from last year (likely $1,200-$1,400), plus increase your payment by the $117-$125 necessary to keep your escrow account in the black.