Allstate Wins 29% Rate Hike in Miss.; Resumes Coastal Writings
Southeast News • April 20, 2007
Homeowners on Mississippi's Gulf Coast face another insurance rate hike in Hurricane Katrina's aftermath.
Mississippi insurance regulators this week approved a statewide rate increase of 29 ...
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Subject: Ridiculous
Posted On: April 24, 2007, 2:14 pm CDT
Posted By: Lotus blossom
Comment:
I don't understand the hostility here. Doesn't a business have the right to make a reasonable profit? They are not in business for their health; they are in it to make a profit. Insurance rates must be adequate, not excessive, & not unfairly discriminatory. Historically, property insurance has been underpriced all over the nation. And this is b/c insurers used to make so much money in investment income. Now, that they are not and we've had some very active hurricane seasons, they are focusing on u/w income.
Gov't regulators have made it impossible to do insurance business in certain states, such as Louisiana, Florida & Miss. Why? b/c they tell the ins carriers that they cannot charge rates commensurate w/exposure,(they are prohibited from charging adequate rates) AND they must continue to write business. Look at the state of Florida. Big mess. This is why so many of the private carriers are pulling out of certain areas by issuing mass non-renewals and refusing to entertain new risks. If you owned a business that was always operating in the red, what would you do? It's not rocket science here; you know you would either close your doors or close them in the areas that are not producing a profit. I think what needs to happen all up & down the coast is for the various states to handle the entire wind exposure & the private carriers handle all other perils. Or, there needs to be a national catastrophe fund where all homeowners in the nation share the cost of the windstorm exposure (I'm sure this'll fly!).
Subject: Ridiculous
Gov't regulators have made it impossible to do insurance business in certain states, such as Louisiana, Florida & Miss. Why? b/c they tell the ins carriers that they cannot charge rates commensurate w/exposure,(they are prohibited from charging adequate rates) AND they must continue to write business. Look at the state of Florida. Big mess. This is why so many of the private carriers are pulling out of certain areas by issuing mass non-renewals and refusing to entertain new risks. If you owned a business that was always operating in the red, what would you do? It's not rocket science here; you know you would either close your doors or close them in the areas that are not producing a profit. I think what needs to happen all up & down the coast is for the various states to handle the entire wind exposure & the private carriers handle all other perils. Or, there needs to be a national catastrophe fund where all homeowners in the nation share the cost of the windstorm exposure (I'm sure this'll fly!).