Posted On: February 1, 2007, 1:37 pm CST

Posted By: Jeff

So, excluding the cat exposure of wind and flood is writing insurance in FL profitable? I do not live in FL, and have no idea what the average HO insurance premiums are, but it seems like the citizens of FL do not accept what the companies claim is their actuarily sound premium levels in order to write at a profit.

Everytime I read articles / comments with regard to the FL insurance problem, the more I believe a CAT fund needs to be set up to remove the insurers from the CAT exposure business. I was wondering...if there were moderate to bad hurricane seasons every year, is it even possible to insure homes at a profit?

I would assume that those of you who have posted here(and please correct me if I'm wrong) would just have the private insurers charge what they need to be profitable. But what percentage of homeowners would need to priced out of the market before we should look for an alternative solution. Say, for example, to turn a profit in FL, private insurers would have to charge a rate that priced out 40% of the homeowners, is this okay? Do any of you have another suggestion?

I do agree though, that forcing business decisions on these companies will have them looking for a way out and may in the end really hurt Floridians.