Chuck Schumer or Allstate. Obviously, Allstate has some major issues, so no need to go over all of those, but come on! Schumer\’s doesn\’t like the way Allstate handles risk management, so he\’s working on a way to intimidate and/or force them to write how and where he wants them to or probably get invited out of New York all together. Just another example of liberals forgetting that private business is private business.
Luckily we don\’t have federal regulation of insurance yet so all he can do is huff and puff.
But he did make an interesting admission most liberals don\’t. He said premium would go up due to less competition. Conversely, if competition goes up, premiums would come down. He should pipe down and let the market take care of itself.
The statements in this article about Allstate not getting off existing business are unfortunately outdated. In today\’s Newsday, they announced that they will be non-renewing some number of policies \’well below the state-allowed maximum\’. How kind of them to stay within the law.
And they should if they believe those policies pose a larger risk than they can collect premium to cover. As a publicly traded company, they are in business to make money for their share holders. They should do everything within the law (that makes sense) to achieve that. Obviously they should not non-renew the max if it doesn\’t make business sense and I don\’t propose pushing the boundaries of the law. But they should not be expected to do business that will loose them money.
with you grave concern for the coastal property owner I\’m sure you\’ll have no problem in turning your pension over to allstate so that they can continue to keep their costs low.
Thank you for your kind support to all NY coastal property owners. Your generous gift is appreciated.
Or better yet, would Chuck be willing to take on the risk he wants Allstate to take? Would he take the premium for the properties Allstate is non-renewing and not writing and agree to pay those claims – hurricane and other?
This is typical Schumer. He is just grabbing the spot light while he can. This is just another example of the great liberal socialist representation we have here in NY. Imagine our luck to have Chucky and Carpetbagger Hillary to save all of us morons here in NY from the bad capitolists and corrupt administration. He ought to do something to better protect NY and the USA from more terrorist attacks instead of claiming everyone else is out of the mainstream and undermining the efforts of the President. Oh but I forgot he would be happy with another terrorist attack so he could blame that on the President too.
They should not be \’forced\’ to write business that loses money, but this is posturing on their part because at this point they have not lost money, they are afraid that they MIGHT lose money.
And they are pushing for both federal and state backstops/bailouts because the bottom line is that they were greedy for years and sold a whole lot of underpriced insurance on Long Island.
Based on their best analysis of the available data, Allstate has to make a business decision about when, where and how many policies to write. Obviously no one knows the future with certainty so they must make decisions based on what MIGHT happen. After the hurricane it\’s too late to lessen their exposure.
I\’m not a big fan of government (taxpayer) backstops but having one may actually reduce government payouts. If without a backstop insurers won\’t write, the government would be on the hook for more uninsured homeowners. With a backstop, insurers pay up to that backstop on the additional risks they write and the gov only pays the excess.
While considering stupid insurance posturing don\’t forget the great Senator from MS. Trent Lott. He is suing St. Farm because they declined the flood claim on his $1 million dollar ocean front mansion.
You would think a U.S. Senator might be familar with the Federal Flood program and have enough sense to buy some coverage on his beach front bungalow. I guess he was waiting for some insurance lobbyist to include flood coverage in his last gift bag.
What is the purpose of reinsurance if the government provides a backstop? Why isn\’t the reinsurance market weighing in on this issue – are they aiming to go out of busness?
I read he got a perfect 1600 on his SAT. Lots of brainpower. But like many business hating regulation crazy lefty geeks he has trouble understanding the difference between private property and public property.
The previous comments about Allstate\’s responsibility to its STOCKHOLDERS are right on target.
Insurance has, and always will be a business charged with the social issue of collecting cash from many to be paid to the few.
I beleive the windstorm/hurricane issue can only be solved at the national level. Getting the Federal Gov involved should teach the carriers a lesson or two…
Having just been in a meeting with the Pres. of a big regional insurer, he commented we would be seeing this type of actions from many companies. The forcast models of loss were blown out by Rita. He commented that one the top 10 ins co presidents commented that if one of the storms in FL in 04 had hit 30 miles further North, they would be out of business! We just got by the 1-1 treaty renewals, now hang on for the 6-1 renewals when the reinsurers have a better handles on their losses. This sounds like an exposure driven decision and as much as we do not like it, most of us in the industry will be facing more of it- NY may be hit the hardest due to concentration of the property values.
THE PROBLEM WITH ALLSTATE IS THEY HAVE PREDETORY PRICING IN ALL THERE MARKETS THAT THEY OPERATE. ALL ALONG THE GULF COAST ALLSTATE CAME OUT WITH A POLICY THAT WAS HALF THE PRICE FROM WHAT THE COMPETITION WAS CHARGING FOR HOME INSURANCE. NOW, THE ALLSTATE HOME POLICY WAS NOT EXACTLY WHAT THE OTHER INSURANCE COMPANIES WERE OFFERING IT WAS JUST CHEAPER AND ALLSTATE MARKETED THIS HOME INSURANCE POLICY HARD THROUGH OUT THE GULF COAST. THIS TURNED THE PRICING MODELS UPSIDE DOWN FORCING OTHER COMPANIES TO RADICALLY TO CHANGE THERE PRICING TO KEEP POLICYHOLDERS. IF ALLSTATE WOULD JUST COMPETE HEADS UP WITHOUT TRYING TO LEVERAGE THE MARKET IN THERE FAVOR WITH PREDATORY PRICING, THERE WOULD NOT BE A INSURANCE CRISIS. BUT, WHEN THE CONSUMER CHASES THE CHEAPEST HOME POLICY NOT KNOWING THAT THE POLICY IS RADICALLY DIFFERENT THAT IS WRONG. IT PUTS THE CONSUMER IN A BAD POSITION BECAUSE THE POLICY DOES NOT PUT THERE HOME BACK BECAUSE THERE IS NO OR LIMITED WATER DAMAGE, OR NO ADDITIONAL LIVING EXPENSES TO HELP DURING THE CLAIM AND SO ON THROUGHOUT THE POLICY WITH ALLSTATE. INSURANCE IS A GOOD INDUSTRY THAT HELPS PEOPLE, BUT WHEN ONE COMPANY TRIES TO CAPTURE THE WHOLE MARKET THAT PLACES THE CONSUMER, STATE AND OTHER INSURANCE COMPANIES IN A VERY BAD POSITION AND BRINGS BAD HEADLINES THAT ARE NOT NECESSARY. JUST COMPETE AND ALLOW THE CONSUMER TO PICK, WITHOUT TRYING TO TAKE OVER THE MARKETPLACE.
Ms Logan,
I\’m sorry, but what kind of liberal pie-in-the sky tripe are you shoveling?
Insurance is a business dedicated to profits or else the business ceases, it is not a \”spread the wealth\” government program you\’re obviously fond of.
I am in favor of LONG TERM sound and ethical business practices. In my opinion the insurance industry abuses the State Regulatory system to the detriment of every stakeholder. The industry is a disgrace and will eventually implode.
THIS IS NOT ABOUT CASH FLOW UNDERWRITING, THIS IS ABOUT PREDATORY PRICING WHERE ONE COMPANY TRIES TO EFFECT THE MARKET PRICING AND OTHER COMPANIES TO GET IN LINE WITH THERE PRICING OR THEY LEAVE THE MARKET. THIS IS BAD AS REINSURANCE IS THE SAME MOST BETWEEN COMPANIES AND WHEN A COMPANY OPERATES AT A LOSS TO GET ALL THE CUSTOMERS THIS FORCES THE SMALL COMPANIES OUT OF THE MARKETPLACE. JUST LOOK AT TODAYS ARTICLE WHERE ALLSTATE IS TRYING TO GET THERE MESSAGE TO EVERY DRIVER IN OHIO BY ADVERTISING THRU THE DRIVERS LICENSE BUREAU. AGENTS CAN NOT COMPETE WITH THIS AND I BELIEVE THAT ALLSTATE REAL PLAN IS TO PUT AGENTS OUT OF BUSINESS. THAT WOULD FREE UP THE COMMISSION AND THEY THINK THEY WOULD MAKE MORE MONEY. WHAT AGENT CAN STAY IN BUSINESS WHEN THE PREMIUMS ARE SO LOW AND THE COMMISSION WITH ALLSTATE RANGE AROUND 10 PERCENT AND YOU DO NOT GET RENEWALS. HOW LONG WOULD WE BE IN BUSINESS.
Allstate is a typical case of cash flow underwriting. Blame this trend on CEO & CFO compensation packages that reward short term planning and performance. The insurance industry is more corrupt than Enron and will eventually cause far more financial harm.
Long term handling in insurance? SO, I guess insurance company personnel are supposed to be God and know what will happen in the future. They SAY oil prices are up, we pay more and there is no choice because the gas is higher all over.
If TRUE insurance costs from a Katrina type of event happen, obviously costs have to go up because that is not the norm and cannot be planned for in the long term future or the rates would have to be higher for years \”just in case\” it happened.
Hurricanes exposed alot of this .
Chuck Schumer or Allstate. Obviously, Allstate has some major issues, so no need to go over all of those, but come on! Schumer\’s doesn\’t like the way Allstate handles risk management, so he\’s working on a way to intimidate and/or force them to write how and where he wants them to or probably get invited out of New York all together. Just another example of liberals forgetting that private business is private business.
Luckily we don\’t have federal regulation of insurance yet so all he can do is huff and puff.
But he did make an interesting admission most liberals don\’t. He said premium would go up due to less competition. Conversely, if competition goes up, premiums would come down. He should pipe down and let the market take care of itself.
The statements in this article about Allstate not getting off existing business are unfortunately outdated. In today\’s Newsday, they announced that they will be non-renewing some number of policies \’well below the state-allowed maximum\’. How kind of them to stay within the law.
http://www.newsday.com/business/ny-bzinsu064616061feb06,0,4672446.story
And they should if they believe those policies pose a larger risk than they can collect premium to cover. As a publicly traded company, they are in business to make money for their share holders. They should do everything within the law (that makes sense) to achieve that. Obviously they should not non-renew the max if it doesn\’t make business sense and I don\’t propose pushing the boundaries of the law. But they should not be expected to do business that will loose them money.
I love Schumer\’s quote : Hurricane fears are a \”bogus scare tactic\”.
He ought to come tour down here.
Chuck,
with you grave concern for the coastal property owner I\’m sure you\’ll have no problem in turning your pension over to allstate so that they can continue to keep their costs low.
Thank you for your kind support to all NY coastal property owners. Your generous gift is appreciated.
Or better yet, would Chuck be willing to take on the risk he wants Allstate to take? Would he take the premium for the properties Allstate is non-renewing and not writing and agree to pay those claims – hurricane and other?
This is typical Schumer. He is just grabbing the spot light while he can. This is just another example of the great liberal socialist representation we have here in NY. Imagine our luck to have Chucky and Carpetbagger Hillary to save all of us morons here in NY from the bad capitolists and corrupt administration. He ought to do something to better protect NY and the USA from more terrorist attacks instead of claiming everyone else is out of the mainstream and undermining the efforts of the President. Oh but I forgot he would be happy with another terrorist attack so he could blame that on the President too.
Since when did writing insurance become a public service and not a business?
They should not be \’forced\’ to write business that loses money, but this is posturing on their part because at this point they have not lost money, they are afraid that they MIGHT lose money.
And they are pushing for both federal and state backstops/bailouts because the bottom line is that they were greedy for years and sold a whole lot of underpriced insurance on Long Island.
Based on their best analysis of the available data, Allstate has to make a business decision about when, where and how many policies to write. Obviously no one knows the future with certainty so they must make decisions based on what MIGHT happen. After the hurricane it\’s too late to lessen their exposure.
I\’m not a big fan of government (taxpayer) backstops but having one may actually reduce government payouts. If without a backstop insurers won\’t write, the government would be on the hook for more uninsured homeowners. With a backstop, insurers pay up to that backstop on the additional risks they write and the gov only pays the excess.
While considering stupid insurance posturing don\’t forget the great Senator from MS. Trent Lott. He is suing St. Farm because they declined the flood claim on his $1 million dollar ocean front mansion.
You would think a U.S. Senator might be familar with the Federal Flood program and have enough sense to buy some coverage on his beach front bungalow. I guess he was waiting for some insurance lobbyist to include flood coverage in his last gift bag.
What is the purpose of reinsurance if the government provides a backstop? Why isn\’t the reinsurance market weighing in on this issue – are they aiming to go out of busness?
I read he got a perfect 1600 on his SAT. Lots of brainpower. But like many business hating regulation crazy lefty geeks he has trouble understanding the difference between private property and public property.
The previous comments about Allstate\’s responsibility to its STOCKHOLDERS are right on target.
Insurance has, and always will be a business charged with the social issue of collecting cash from many to be paid to the few.
I beleive the windstorm/hurricane issue can only be solved at the national level. Getting the Federal Gov involved should teach the carriers a lesson or two…
Having just been in a meeting with the Pres. of a big regional insurer, he commented we would be seeing this type of actions from many companies. The forcast models of loss were blown out by Rita. He commented that one the top 10 ins co presidents commented that if one of the storms in FL in 04 had hit 30 miles further North, they would be out of business! We just got by the 1-1 treaty renewals, now hang on for the 6-1 renewals when the reinsurers have a better handles on their losses. This sounds like an exposure driven decision and as much as we do not like it, most of us in the industry will be facing more of it- NY may be hit the hardest due to concentration of the property values.
THE PROBLEM WITH ALLSTATE IS THEY HAVE PREDETORY PRICING IN ALL THERE MARKETS THAT THEY OPERATE. ALL ALONG THE GULF COAST ALLSTATE CAME OUT WITH A POLICY THAT WAS HALF THE PRICE FROM WHAT THE COMPETITION WAS CHARGING FOR HOME INSURANCE. NOW, THE ALLSTATE HOME POLICY WAS NOT EXACTLY WHAT THE OTHER INSURANCE COMPANIES WERE OFFERING IT WAS JUST CHEAPER AND ALLSTATE MARKETED THIS HOME INSURANCE POLICY HARD THROUGH OUT THE GULF COAST. THIS TURNED THE PRICING MODELS UPSIDE DOWN FORCING OTHER COMPANIES TO RADICALLY TO CHANGE THERE PRICING TO KEEP POLICYHOLDERS. IF ALLSTATE WOULD JUST COMPETE HEADS UP WITHOUT TRYING TO LEVERAGE THE MARKET IN THERE FAVOR WITH PREDATORY PRICING, THERE WOULD NOT BE A INSURANCE CRISIS. BUT, WHEN THE CONSUMER CHASES THE CHEAPEST HOME POLICY NOT KNOWING THAT THE POLICY IS RADICALLY DIFFERENT THAT IS WRONG. IT PUTS THE CONSUMER IN A BAD POSITION BECAUSE THE POLICY DOES NOT PUT THERE HOME BACK BECAUSE THERE IS NO OR LIMITED WATER DAMAGE, OR NO ADDITIONAL LIVING EXPENSES TO HELP DURING THE CLAIM AND SO ON THROUGHOUT THE POLICY WITH ALLSTATE. INSURANCE IS A GOOD INDUSTRY THAT HELPS PEOPLE, BUT WHEN ONE COMPANY TRIES TO CAPTURE THE WHOLE MARKET THAT PLACES THE CONSUMER, STATE AND OTHER INSURANCE COMPANIES IN A VERY BAD POSITION AND BRINGS BAD HEADLINES THAT ARE NOT NECESSARY. JUST COMPETE AND ALLOW THE CONSUMER TO PICK, WITHOUT TRYING TO TAKE OVER THE MARKETPLACE.
Ms Logan,
I\’m sorry, but what kind of liberal pie-in-the sky tripe are you shoveling?
Insurance is a business dedicated to profits or else the business ceases, it is not a \”spread the wealth\” government program you\’re obviously fond of.
I am in favor of LONG TERM sound and ethical business practices. In my opinion the insurance industry abuses the State Regulatory system to the detriment of every stakeholder. The industry is a disgrace and will eventually implode.
THIS IS NOT ABOUT CASH FLOW UNDERWRITING, THIS IS ABOUT PREDATORY PRICING WHERE ONE COMPANY TRIES TO EFFECT THE MARKET PRICING AND OTHER COMPANIES TO GET IN LINE WITH THERE PRICING OR THEY LEAVE THE MARKET. THIS IS BAD AS REINSURANCE IS THE SAME MOST BETWEEN COMPANIES AND WHEN A COMPANY OPERATES AT A LOSS TO GET ALL THE CUSTOMERS THIS FORCES THE SMALL COMPANIES OUT OF THE MARKETPLACE. JUST LOOK AT TODAYS ARTICLE WHERE ALLSTATE IS TRYING TO GET THERE MESSAGE TO EVERY DRIVER IN OHIO BY ADVERTISING THRU THE DRIVERS LICENSE BUREAU. AGENTS CAN NOT COMPETE WITH THIS AND I BELIEVE THAT ALLSTATE REAL PLAN IS TO PUT AGENTS OUT OF BUSINESS. THAT WOULD FREE UP THE COMMISSION AND THEY THINK THEY WOULD MAKE MORE MONEY. WHAT AGENT CAN STAY IN BUSINESS WHEN THE PREMIUMS ARE SO LOW AND THE COMMISSION WITH ALLSTATE RANGE AROUND 10 PERCENT AND YOU DO NOT GET RENEWALS. HOW LONG WOULD WE BE IN BUSINESS.
Allstate is a typical case of cash flow underwriting. Blame this trend on CEO & CFO compensation packages that reward short term planning and performance. The insurance industry is more corrupt than Enron and will eventually cause far more financial harm.
Long term handling in insurance? SO, I guess insurance company personnel are supposed to be God and know what will happen in the future. They SAY oil prices are up, we pay more and there is no choice because the gas is higher all over.
If TRUE insurance costs from a Katrina type of event happen, obviously costs have to go up because that is not the norm and cannot be planned for in the long term future or the rates would have to be higher for years \”just in case\” it happened.