A complete story would have detailed what happens if the payouts were over 60%. Subtracting overhead expenses from the 40% leaves a small opportunity for the insuror and certainly should prevent much of a reserve buildup for the future. If there was a tremendous influx of claims due to a disaster this could be a formula for insolvency in the future of this program. However Zurich knew the rules when they entered this State
Zurich is no longer writing NY DBL and will non-renew it’s book at the end of 2013. I can’t figure why they’d exit such a profitable business other than that NYS must be terrible to deal with and not worth the effort; also why they would simply exit the business and not have sold their book to some other DBL carrier?
Sounds like a lot but comes out to about $62.47 per policyholder.
A complete story would have detailed what happens if the payouts were over 60%. Subtracting overhead expenses from the 40% leaves a small opportunity for the insuror and certainly should prevent much of a reserve buildup for the future. If there was a tremendous influx of claims due to a disaster this could be a formula for insolvency in the future of this program. However Zurich knew the rules when they entered this State
Zurich is no longer writing NY DBL and will non-renew it’s book at the end of 2013. I can’t figure why they’d exit such a profitable business other than that NYS must be terrible to deal with and not worth the effort; also why they would simply exit the business and not have sold their book to some other DBL carrier?