As long as there is any assessment risk, Citizens needs increases, not decreases. When Citizens is solvent AND charging rates higher than 80% of the private market, then we can start to talk about decreases. Have we learned nothing?
Has anyone observed that most of the insurance company’s in Florida including Citzens are placing values on homes that are higher than the the replacement construction value of the dwellings?
From what I can determine, this is a widespread pratice in the state of Florida.
It seems that all of the insurance company’s are doing this to get the premium they need because the rates are too low for the risk they insure and they also need to stay competive with all of the other company’s in Florida.
In light of its recent portfolio transfer of $3.1 Billion in risk to other insurers and reinsurers, Citizens would be wise not to decrease rates just to wind up needing to make another transfer. If actuaries do not deem a rate increase appropriate, then remaining flat is probably the wisest course of action.
As long as there is any assessment risk, Citizens needs increases, not decreases. When Citizens is solvent AND charging rates higher than 80% of the private market, then we can start to talk about decreases. Have we learned nothing?
Has anyone observed that most of the insurance company’s in Florida including Citzens are placing values on homes that are higher than the the replacement construction value of the dwellings?
From what I can determine, this is a widespread pratice in the state of Florida.
It seems that all of the insurance company’s are doing this to get the premium they need because the rates are too low for the risk they insure and they also need to stay competive with all of the other company’s in Florida.
John
In light of its recent portfolio transfer of $3.1 Billion in risk to other insurers and reinsurers, Citizens would be wise not to decrease rates just to wind up needing to make another transfer. If actuaries do not deem a rate increase appropriate, then remaining flat is probably the wisest course of action.