CIBA Insurance purchasing group...Help

[jimmyr1978]

I have seen a CIBA quote recently that included a "Modified Replacement Cost," whereas the insured is allowed to "reduce" the building value by 25% but then receive up to 125% RC per building. This allows CIBA to write a policy with a higher rate but on a lower TIV, making them competitive. This clause appeared to remove the blanket coverage, which was a big deal for the insured. Has anyone written a policy like this? Any claims experience?

There are unsubstantiated rumors (so take it for what it's worth) that there could be issues at the next CIBA renewal in March. I've reviewed the CIBA program, and believe it has benefits, except for some of the shared limits, especially the $1 billion shared EQ limit. That could be eaten up very, very quickly by even a minor tremor.

[abtoe]

UPDATE: All of you that warned against CIBA were correct. Last week CIBA announced a huge rate increase for hundreds, possibly thousands of customers, mostly between 30% and 45% rate increases over expiring premiums, even raising prices to customers that had no claims. Making matters worse, they provided less than three weeks advance notice to customers of that significant increase, and the CIBA contract calls for a significant penalty for early cancellation. Such short notice is a violation of California Insurance Code section 678.1(c). Yet another example as to why the public hates and distrusts our industry.

[Adame526]

Folks,
My retailers that have depended upon this program are definitely seeing a large uptick in rates. Especially on the West Coast.

I'd be happy to offer my services as this shift continues. My contact information is shown below. Please do not hesitate to reach out if I can assist. I've got markets that will write them. Admitted and Non-admitted. Large TIVs are OK. Retention of you business is crucial. Look forward to the opportunity to be of service.

Toni Adame-Cavage
MarketScout Wholesale LLC
tcavage@marketscoutwholesale.com
P: 8057652802

[jimmyr1978]

If anyone in the Midwest or South is experiencing issues with CIBA renewals, please share. Word on the street has been that this program was going to implode when the March 30, 2012 program renewal came. The lower layers supposedly were getting hit with some major claims. A CIBA representative told me they were exiting Texas this year, and multiple sources have told me some Midwestern states were also potentially on the chopping block, though nothing is substantiated.

The program is rather innovative, but there has always been inherent dangers. We have reviewed some CIBA policies and proposals in this region, and the rates were incredible for the risk. The coverage - other than the shared EQ and flood - appeared to be decent. Even with 35-40% increases, they may keep some of that hab business, as the market is headed that direction.

[dale]

These programs are not for novice buyers, but can make a lot of sense for larger accounts with buyers that understand the shared limit concept. Our offices have foud that they are very good for saving money for accounts with different locations that would not share in the same potential loss, such as hurricane or flood.

we have used programs through Maplewood Group in Ohio. you might want to try them.

[tburn]

Just sent them a $72,000,000 TIV to review and quote, seven shopping center locations in and around Houston, TX. I await their response.