Posted On: April 14, 2008, 12:38 pm CDT

Posted By: Florida U/W

If you know anything at all about how Insurance Companies file their rates, then you would know that companies cannot just increase their rates when they feel like it or when these FORECASTS come out.

First you have Acutaries, and they are going to look at their company's loss ratio; for the company as a whole and in the states that were or will be most affected. Then they are going to make recommendations to those in charge, it's the Company Big Wigs that are going to decide if the rate changes will work or not in an already soft market. If they decide rates need to be increased, (or decreased as they were in Florida in 2006) then the compnay has have to file their changes with the State DOI and wait for approval. Not all states are file and use like, but as a New York agent NY Guy should know it takes forever to get rate changes approved in that and many other states. Then if the changes are approved they will not be immediately in force.

Unfortunately rate increases like the ones you all are dooming and glooming about thend to occur after a major catistrophic event, when companies are needing to recoup their losses.

Rates cannot and are not changed just because the FORECAST (remember this means TO ESTIMATE)says this is going to be a very active Tropical Hurricane Season or not. (You may not get hit with Hurricanes alot in CT and NY but don't forget they do turn into Noreasters)

FL U/W is from PT Jefferson, Long Island