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Funny how Taylor blames the industry for stopping the bill. Looks like NOBODY likes it, from Obama to PCI to environmental groups.
“There are a few companies still writing on the coast, but they are cherry picking the low-risk, well-built properties,” Martin said.
If I am not mistaken isnt the whole idea behind insurance. Write risks that pose a relatively low hazard to the company so that they make money, keep rates down, and stay solvent. This isn’t charity and having the government continually pay claims to rebuild in the same area is a waste of money..Make the state fund pay it all. Oh wait, if a large one hits they will be insolvent. Better raise their rates to cover the exposures in their state!
State Farm would LOVE to SOCIALIZE the peril of WIND/HURRICANE/TORNADO to totally eliminate their exposure. Now that they have garnered FAR TOO MUCH PROPERTY INSURANCE MARKET SHARE, ESPECIALLY IN COASTAL AREAS, they want the GOVERNMENT AND TAX PAYERS to pick up the WIND Exposure. If that happens, the GOVERNMENT should ALSO TAKE ALL OF THE AUTO PREMIUM away form State Farm TOO. At that point, the good old, “capitalist” USofA might as well go TOTALLY SOCIAL. Of course, State Farm only wants to give the peril of WIND to the government and tax payers, they want to KEEP the AUTO PREMIUM, furthermore, if we would SOCIALIZE WIND EXPOSURE, then State Farm would be the ONLY insurance company our country would need for the homeowners insurance line. Without the WIND exposure, State Farm would, once again, use their Homeowners Line as a LOSS LEADER just to get the the auto. But this time (devoid of any WIND EXPOSURE) it would be ever better…heck, they could GIVE FREE HOMEOWNERS INSURANCE, as long as you bring them the auto…
Maybe only one company in the PROPERTY insurance business would be a good thing for our country. The government would “insure” the BIG RISKS like: Flood, Wind/Hurricane/Tornado,Earthquake,Health Care,Retirement/Unemployment,Poverty/Starvation… Then there would be STATE FARM for whatever is left to insure for????
Is the problem that coverage would be prohibitively expensive without the government subsidy? If the subsidy was removed, would insurers try to compete? What if insurers had to package flood insurance with HO policies? Could the NFIP be established as the mapmaker with the insurers using those as guidelines?