State Farm never non renews they just subsidize the homeowners from auto insurance or life insurance profits.
The top 10 carriers in the state are threatened by higher reinsurance costs and bogus claims and the stupidity of our elected officials to see that we have a problem.
Yet no one sees Poe Financial’s demise coming with their ridiculous lowball rates and non rating.
Hey folks, I think there must be a problem if insurers can no longer make money in Florida, I wonder why the department of Insurance doesn;t go out of their way to keep companies here and offer assistance in a manner that would keep them here, instead they refuse to allow changes, insisting rate increases are not needed, and the result is that consumers get cancelled and have to go to the company that the insurance commissioner created (Citizens), I am sure that if we follow the money we will find the answer. I also predicted Nationwide would non renew a portion of their book on another post last week. State farm will probably chime in here before to long.
I think it’s ironic that after they get their rate increase that they first, decide not to write new business and now indicate that they are dropping 30,000 current policyholders. When is our Insurance Dept/ Commissioner going to act tough and not let insurance companies “cherry pick” what they will and won’t do!!
How much did nationwide spend anyway and what was the percentage of
florida hurricanes claims paid vs total claims paid for the year? and how much money did the company take in from the state of FL MS SC NC AL LA TX and other states in hurricane alley? I bet a hellavalot more than they paid out!!
That’s precisely the point, Earl, other locales can’t support hurricane alley indefinitely. At some time, insurers have to make money in every jurisdiction. With the current investment climate yielding 5-6% returns, and underwriting ratios hovering around 100, insurers have to tighten their belts and get rid of the chaff.
Also, who says insurers aren’t entitled to make a profit? Who says insurers have to buoy up an unprofitable region with a profitable one?
When the big boys leave town, the little guys are suppose to pick up the slack.
They do what they can, but the reserves of many Florida-only HO carriers don’t inspire confidence…. How many storms can they take before we all end up in Citizens or undercapitalized take-outs?
I am seeking investment money from all the consumers that think Florida is such a good market place for property insurance.
Please let me know how much you have in liquid assets that you are going to front, The cost involved in establishing a new carrier in Florida is extremely high, you first have to support Gallaghers campaign for election and then set up the organization, MGA, Underwriting area, Shell LLC, get knowledgable employees, Oh yea, you need an office building, computers, systems programming, lets not forget attorneys for everything. You are looking at $20 million minimum to open the doors, and then current projections are that you are really really lucky to make 5% return on investment income and most companies are running at 99 to 104% loss ratio before the storms of 04. The state statues limit companies to a max of 5% profit margin and no one has done it recently. 100 year old companies have not figured out how to do it so they are packing up, but 13 other brand new start up companies are taking a shot at the bonus deal for takeouts from Citizens, they have no capital base, just the statutory minimum limits for the most part and the hope of no wind this year. Hell we will make millions, go ahead send me your money, if you think it is that lucrative step up, otherwise shut up and don;t vote for Uncle Tom.
If Florida was a good state for insurance companies to make money why is Nationwide the 7th company to take restrictive action or leave. If companies were able to make a fair return on their capital in this state, Ins. Cos. would commit MORE capital not less. Rates are only one part of the equation. Why are the POE companies doing so poorly? They are Florida only companies.
What qualified Gallagher to be insurance commissioner in the first place anyway? He should be running as a communist candidate. In any other arena of life people are required to know the subject before being allowed to regulate it.
That is one of the MOST competant postings I have seen on these message boards. If companies were making a profit they would write property in Florida.
30,000 policies $1,500ea =$45 Million
5% profit (no Cat losses) $2,250,000
FACT 1 in 5 homes had hurricane damage
6,000 homes with claims of $10,000ea = $60 Million Dollars!
Multiple all factors by ten…
Government: If it moves, tax it. If it keeps moving, regulate it. If it stops moving, subsidize it.
it’s obivous that you have absolutely no clue about insurance. I would be hard pressed to think of anywhere worse in the world to “cherry pick” than Florida. Hurricanes, Wind, Ligntning, Hail, Fraud, Corruption make cherry picking impossible in this state.
The question you might ask yourself is why any prudent investor would expect his money to be tied up in this state when you have the rest of the US to operate in.
Lets face it, FLA is a Looser State for the HO marketplace. The Insurance Dept is in bed with the Consumer, Thats Just Bad Medicine.
Fla must change the political nature of the Post and allow Insurance companies to charge there rates that they need to level out their books. Why can’t the “Free Market” system be allowed to work in this arena ? It works elsewhere in our economic system….
Again, the Fla Homeowners Marketplace supplies some of the best Entertainment Value found in business..What a Joke ! The sad thought is that the real looser in the end is the consumer….Poetic Justice, I say !
NATIONWIDE IS SCREWING THEIR CUSTOMERS.
I COULD HAVE SUED THEM IN THE EARLIER 80\’S
FOR MISTAKES THEY MADE BUT SINCE THE AGENT WAS A FRIEND OF MINE I DECIDED TO LET IT GO.
I STILL KNOW THEIR LAWYERS NAME.
NOW THEY DO NOT CARE ABOUT ME BUT THEIR GREED HAS ALLOWED THIS.
THEY FORMED THEIR OWN COMPANY IN FLORIDA SO THEY WOULD NOT HAVE TO USE THE ASSESTS OF THE MOTHER COMPANY WEHOM WE ALL PAID INTO FOR 40 YEARS
IN OTHER WORDS DO NOT TRUST GREED BECAUSE IT WILL BITE YOU
we need a tva like nationalization of home insurance in florida. i lived in tennessee during the tva era -it was wonderful.all of a sudden we had electric power we could afford. as much as i am opposed to governmentalization i feel this is the only answer. these greedy insurance companies will only respond to reason if their very existences are challanged.
Emotions are running wild here folks.
To make a statment that greedy insurance companies will only respond if we NATIONALIZE coverage in a State. Well first off it sounds stupid by nature, Florida is a State not a Nation and the rest of the Nation will not and should support a fund that ONLY helps Florida. Now if you set up a National catastrophe fund that makes more since because ALL States could have access to this fund.
The whole point here is that this acticle about Nationwide is about them dropping customers, this means they do not want their money and could care less about who they get insurance with. Companies are not fighting over these customers, they do not want them. Companies are not making money unless they are selling policies, so to use the word Greedy is a little off base. And actually makes you look silly for not understanding what is really going on.
State Farm never non renews they just subsidize the homeowners from auto insurance or life insurance profits.
The top 10 carriers in the state are threatened by higher reinsurance costs and bogus claims and the stupidity of our elected officials to see that we have a problem.
Yet no one sees Poe Financial’s demise coming with their ridiculous lowball rates and non rating.
I am in on losing my investment in the state
Hey folks, I think there must be a problem if insurers can no longer make money in Florida, I wonder why the department of Insurance doesn;t go out of their way to keep companies here and offer assistance in a manner that would keep them here, instead they refuse to allow changes, insisting rate increases are not needed, and the result is that consumers get cancelled and have to go to the company that the insurance commissioner created (Citizens), I am sure that if we follow the money we will find the answer. I also predicted Nationwide would non renew a portion of their book on another post last week. State farm will probably chime in here before to long.
I think it’s ironic that after they get their rate increase that they first, decide not to write new business and now indicate that they are dropping 30,000 current policyholders. When is our Insurance Dept/ Commissioner going to act tough and not let insurance companies “cherry pick” what they will and won’t do!!
Cherrypick? how is it cherrypicking when insurers ask for the rate they need to break even, and then leave when they don’t get it?
How much did nationwide spend anyway and what was the percentage of
florida hurricanes claims paid vs total claims paid for the year? and how much money did the company take in from the state of FL MS SC NC AL LA TX and other states in hurricane alley? I bet a hellavalot more than they paid out!!
That’s precisely the point, Earl, other locales can’t support hurricane alley indefinitely. At some time, insurers have to make money in every jurisdiction. With the current investment climate yielding 5-6% returns, and underwriting ratios hovering around 100, insurers have to tighten their belts and get rid of the chaff.
Also, who says insurers aren’t entitled to make a profit? Who says insurers have to buoy up an unprofitable region with a profitable one?
When the big boys leave town, the little guys are suppose to pick up the slack.
They do what they can, but the reserves of many Florida-only HO carriers don’t inspire confidence…. How many storms can they take before we all end up in Citizens or undercapitalized take-outs?
I am seeking investment money from all the consumers that think Florida is such a good market place for property insurance.
Please let me know how much you have in liquid assets that you are going to front, The cost involved in establishing a new carrier in Florida is extremely high, you first have to support Gallaghers campaign for election and then set up the organization, MGA, Underwriting area, Shell LLC, get knowledgable employees, Oh yea, you need an office building, computers, systems programming, lets not forget attorneys for everything. You are looking at $20 million minimum to open the doors, and then current projections are that you are really really lucky to make 5% return on investment income and most companies are running at 99 to 104% loss ratio before the storms of 04. The state statues limit companies to a max of 5% profit margin and no one has done it recently. 100 year old companies have not figured out how to do it so they are packing up, but 13 other brand new start up companies are taking a shot at the bonus deal for takeouts from Citizens, they have no capital base, just the statutory minimum limits for the most part and the hope of no wind this year. Hell we will make millions, go ahead send me your money, if you think it is that lucrative step up, otherwise shut up and don;t vote for Uncle Tom.
If Florida was a good state for insurance companies to make money why is Nationwide the 7th company to take restrictive action or leave. If companies were able to make a fair return on their capital in this state, Ins. Cos. would commit MORE capital not less. Rates are only one part of the equation. Why are the POE companies doing so poorly? They are Florida only companies.
What qualified Gallagher to be insurance commissioner in the first place anyway? He should be running as a communist candidate. In any other arena of life people are required to know the subject before being allowed to regulate it.
That is one of the MOST competant postings I have seen on these message boards. If companies were making a profit they would write property in Florida.
30,000 policies $1,500ea =$45 Million
5% profit (no Cat losses) $2,250,000
FACT 1 in 5 homes had hurricane damage
6,000 homes with claims of $10,000ea = $60 Million Dollars!
Multiple all factors by ten…
Government: If it moves, tax it. If it keeps moving, regulate it. If it stops moving, subsidize it.
Larry,
it’s obivous that you have absolutely no clue about insurance. I would be hard pressed to think of anywhere worse in the world to “cherry pick” than Florida. Hurricanes, Wind, Ligntning, Hail, Fraud, Corruption make cherry picking impossible in this state.
The question you might ask yourself is why any prudent investor would expect his money to be tied up in this state when you have the rest of the US to operate in.
Earl,
you have learned well and make me very proud.
Karl
Hey gang,
Lets face it, FLA is a Looser State for the HO marketplace. The Insurance Dept is in bed with the Consumer, Thats Just Bad Medicine.
Fla must change the political nature of the Post and allow Insurance companies to charge there rates that they need to level out their books. Why can’t the “Free Market” system be allowed to work in this arena ? It works elsewhere in our economic system….
Again, the Fla Homeowners Marketplace supplies some of the best Entertainment Value found in business..What a Joke ! The sad thought is that the real looser in the end is the consumer….Poetic Justice, I say !
NATIONWIDE IS SCREWING THEIR CUSTOMERS.
I COULD HAVE SUED THEM IN THE EARLIER 80\’S
FOR MISTAKES THEY MADE BUT SINCE THE AGENT WAS A FRIEND OF MINE I DECIDED TO LET IT GO.
I STILL KNOW THEIR LAWYERS NAME.
NOW THEY DO NOT CARE ABOUT ME BUT THEIR GREED HAS ALLOWED THIS.
THEY FORMED THEIR OWN COMPANY IN FLORIDA SO THEY WOULD NOT HAVE TO USE THE ASSESTS OF THE MOTHER COMPANY WEHOM WE ALL PAID INTO FOR 40 YEARS
IN OTHER WORDS DO NOT TRUST GREED BECAUSE IT WILL BITE YOU
I wonder if these homeowners will keep their auto and other insurance with Nationwide,after being cancelled?
we need a tva like nationalization of home insurance in florida. i lived in tennessee during the tva era -it was wonderful.all of a sudden we had electric power we could afford. as much as i am opposed to governmentalization i feel this is the only answer. these greedy insurance companies will only respond to reason if their very existences are challanged.
I can see it now…so write or cancel more policies or reinstate.
Emotions are running wild here folks.
To make a statment that greedy insurance companies will only respond if we NATIONALIZE coverage in a State. Well first off it sounds stupid by nature, Florida is a State not a Nation and the rest of the Nation will not and should support a fund that ONLY helps Florida. Now if you set up a National catastrophe fund that makes more since because ALL States could have access to this fund.
The whole point here is that this acticle about Nationwide is about them dropping customers, this means they do not want their money and could care less about who they get insurance with. Companies are not fighting over these customers, they do not want them. Companies are not making money unless they are selling policies, so to use the word Greedy is a little off base. And actually makes you look silly for not understanding what is really going on.