I attempted to email the author prior to commenting, but there was no way to do that. I am glad to see that the article has been corrected. However, it would be nice to see at least a note that the article has been edited.
Then it has been corrected. I know that it said Iowa because before commenting, I verified that indeed there was no Celina mutual insurance based out of Iowa.
“ Editor’s Note: This blog has been updated to correct that Celina Mutual was founded in Celina, Ohio. It was incorrected stated to be founded in Iowa. We apologize for the error.”
I fail to understand how 10 inches of snow affected insurers. Iowa is used to snow; 10 inches is nothing to them. The claims from that type of storm should have been baked into actuarial tables since they were invented.
Good question. Unfortunately, many of these insurers have not kept up with inflation and the cost of rebuilding. Many of these companies are writing with thin margins when risk is taken into account, not knowing that any gust of wind could crumble their books.
These smaller, less experienced carriers keep their premiums low and don’t have a built-in surplus cushion. As a result, they are unknowingly writing at a loss.
Celina Mutual insurance is not based in Celina, Iowa as noted in the article, but rather Celina, Ohio.
I attempted to email the author prior to commenting, but there was no way to do that. I am glad to see that the article has been corrected. However, it would be nice to see at least a note that the article has been edited.
Thank you, Jerry, for the notation of correction. This was a very informative and well written article.
but that’s not what the article says…
It is telling, therefore, that among the insurers pulling out of Iowa is Celina Mutual, founded in Celina, Ohio, in 1914.
Then it has been corrected. I know that it said Iowa because before commenting, I verified that indeed there was no Celina mutual insurance based out of Iowa.
“ Editor’s Note: This blog has been updated to correct that Celina Mutual was founded in Celina, Ohio. It was incorrected stated to be founded in Iowa. We apologize for the error.”
I fail to understand how 10 inches of snow affected insurers. Iowa is used to snow; 10 inches is nothing to them. The claims from that type of storm should have been baked into actuarial tables since they were invented.
Good question. Unfortunately, many of these insurers have not kept up with inflation and the cost of rebuilding. Many of these companies are writing with thin margins when risk is taken into account, not knowing that any gust of wind could crumble their books.
These smaller, less experienced carriers keep their premiums low and don’t have a built-in surplus cushion. As a result, they are unknowingly writing at a loss.