N.Y. Consumer Report Accuses Insurers of Needlessly Raising Rates

December 15, 2011

  • December 15, 2011 at 1:30 pm
    Brian says:
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    I don’t suppose they would do a study on the harm lawyers do to the public and insurance rates for slip & fall & products lawsuits that have no merit and are merely looking for “go away money”.

  • December 15, 2011 at 1:39 pm
    Anejo says:
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    If I had a dime for every time a client asked for comprehensive and collusion coverage….

  • December 15, 2011 at 1:40 pm
    Bob says:
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    I guess they have not looked at industies current financials and loss ratios.

    • December 15, 2011 at 4:23 pm
      J.S. says:
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      Or, maybe they read the Fitch report talked about in one of the other articles’ in today’s Insurance Journal News Feed. According to Fitch, and for that matter, AM Best and Conning, the current capital position for the P&C industry is strong. Even with the massive cat losses this year, there will still be a positive return on surplus (2.7% in 2011 and a prediction for 5.4% in 2012).
      Obviously, there are some companies in bad shape but the industry is surprisingly strong given the last 6 years.

      However, I do agree with your comment on loss ratios. Looking at accident year numbers, especially in Work Comp, the picture is pretty bleak and some rate improvement is definitely called for.

  • December 15, 2011 at 2:00 pm
    Peter Polstein says:
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    These people are nothing more than the usual liberal scholastic idiots. They need to look at this years insured cat claims over 108 billion and still counting; the potential for substantial regulatory issues primarily within the basis by which insurers will be able to invest and the potentially different Fitch model for adequacy vs risk. With the advent of FASB and IASB forming what will be an international basis of regulations, despite the continued lack of resolve within the EU community as to Solvency II, the industry given economic conditions and the lack of investment profit will have a tough coming year. Add to that the basis by which reserving will be scrutinized will have crease additional and significant differences.
    Be well all
    Pete

  • December 15, 2011 at 2:05 pm
    Adirondacker says:
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    Surprise surprise… Michael Moore is behind the CJ&D.

    • December 19, 2011 at 5:07 pm
      I also wonder says:
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      Are these same CJ&D folks not able to find work other than at the ACLU?

  • December 15, 2011 at 2:12 pm
    rcb says:
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    J. Robert Hunter has been enriching himself for years by calling himself a “consumer advocate” and criticizing the insurance industry. I am a consumer who does not need a highly paid advocate to watch out for my interests. thank you Mr. Hunter. If I do want for an advocate, I will hire him/her at a salary that I feel is commensurate with the value returned.

  • December 15, 2011 at 2:22 pm
    Jay says:
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    I believe they are correct. There is no reason for a “hard market” to be around the corner in 2012 except for the carriers wanting it…..

    • December 15, 2011 at 3:07 pm
      Retired UW says:
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      So, when the insurance industry is paying out $1.03 for every $1.00 in premium, you’re OK with that? And don’t say that investment income is an offset…because it’s not. You run a business that way, and you’re finding a new line of work.

      • December 15, 2011 at 3:41 pm
        J.S. says:
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        You say investment income is not an offset to underwriting losses. Apparently, you haven’t read Warren Buffet on the subject. I don’t think either Gen RE or GEICO will need to be looking for a new line of work anytime soon.

        • December 16, 2011 at 8:42 am
          Ratemaker says:
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          Actually, I have read Buffet on the subject. He says investment income is an offset, but it is not one that a company should count on, and that most companies should seek an underwriting profit.

          • December 16, 2011 at 1:24 pm
            Brian says:
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            The ROE on a lot of industries is quite a bit higher than the usual whipping posts of insurance & oil but nobody likes to hate Apple very much.

  • December 15, 2011 at 2:55 pm
    spins22 says:
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    I just read the “report”. Talk about smoke and mirrors and being an alarmist. I guess these two couldn’t make it as brokers, agents or u/w’s. Both of these authors need a hobby……

  • December 15, 2011 at 3:20 pm
    Cheetoh Mulligan says:
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    Don’t forget about the fires, tornados, floods, reinsurance rates going up, snow storms, earthquakes of this year. It wasn’t just one event: Hurricane Irene. And there is no investment income to speak of. Carriers were spending their surplus the past few years during the soft market and now they need to get premium and positive underwriting results. If the industry heads could control hard vs. soft markets, I would like to believe that they would install a hard market when the economy got a little better and people could better afford a premium increase.

  • December 15, 2011 at 7:23 pm
    Mike says:
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    Why doesn’t Mr. Hunter just start his own insurance company, undercut these needlessly high prices, and serve the consumers better and at a lower price? If what he says is true, there’s a big profit to be made there.
    The fact that he doesn’t speaks more loudly than any number of hot-air press releases.

    • December 16, 2011 at 12:52 pm
      Milner says:
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      I agree. Many companies were started when the market didn’t respond well to their insureds needs. It’s easier and less risky to whine and complain than to do something constructive.



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