first jury trial on the hurricane damage a little more than a week ago, Judge Senter said State Farm failed to prove its case and the jury ordered the company to pay $2.5 million in punitive damage to a couple in Biloxi. The judge also awarded the couple the full value of their insurance policy, $223,000. State Farm had maintained it owed them nothing
It\’s that sicko time in the cycle when the carriers are pretending to be rich, so they are throwing all caution to the wind. If the dire predictions written about in previous article come to pass, the industry will not have the pre-katrina hard market to fall back on. The question then will be: Which faker company will see their combined ratio exceed their capacity to recover?
This is supply side economics in reverse, this marketplace is just plain nuts, has been for some twenty years, and it makes me seriously wonder whether it can survive it\’s own mistakes. These idiots use one years profits ( no cats, no kittens, no nothing ) and then project them towards some imaginary conclusion. Hell, the industry hasn\’t made a profit for over a decade and a half. Don\’t let, annual profits such as they are, when they are, take away the fact that trending and development of a given year, some three, five years out, provides a far different loss pic.
It\’s no wonder the Government wants to take over the industry, the problem is, they haven\’t figures out why!
I love how they blame us poor underwriters for ignoring losses and slashing prices! Blame it on the financial wizards in managment! I have been doing this for over 20 years, and the underwriters are usually the ones trying to bring some sanity to the coverage and pricing decisions – it\’s the upper management bean counters that keep hounding you and overriding your decisions in order to write business at any cost.
first jury trial on the hurricane damage a little more than a week ago, Judge Senter said State Farm failed to prove its case and the jury ordered the company to pay $2.5 million in punitive damage to a couple in Biloxi. The judge also awarded the couple the full value of their insurance policy, $223,000. State Farm had maintained it owed them nothing
It\’s that sicko time in the cycle when the carriers are pretending to be rich, so they are throwing all caution to the wind. If the dire predictions written about in previous article come to pass, the industry will not have the pre-katrina hard market to fall back on. The question then will be: Which faker company will see their combined ratio exceed their capacity to recover?
This is supply side economics in reverse, this marketplace is just plain nuts, has been for some twenty years, and it makes me seriously wonder whether it can survive it\’s own mistakes. These idiots use one years profits ( no cats, no kittens, no nothing ) and then project them towards some imaginary conclusion. Hell, the industry hasn\’t made a profit for over a decade and a half. Don\’t let, annual profits such as they are, when they are, take away the fact that trending and development of a given year, some three, five years out, provides a far different loss pic.
It\’s no wonder the Government wants to take over the industry, the problem is, they haven\’t figures out why!
Pete
I love how they blame us poor underwriters for ignoring losses and slashing prices! Blame it on the financial wizards in managment! I have been doing this for over 20 years, and the underwriters are usually the ones trying to bring some sanity to the coverage and pricing decisions – it\’s the upper management bean counters that keep hounding you and overriding your decisions in order to write business at any cost.