Major Storm Activity Could Bring Silver Lining of Price Hikes for Insurers

By | August 19, 2009

  • August 19, 2009 at 7:40 am
    tallyman says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    Don’t you worry, don’t you fear, the hard market will soon be here. keep tooting that horn. Liberty Mutual and the Barack-backed insurance carriers, Hartford and AIG, will not let the hard market happen. Liberty doesn’t have to report results, and the others are backed by billions to continue driving prices down. Underwriting is out the window. Losses? What stinking losses? Who ever heard of any stinking losses? or should I say, we don’t need any stinking underwriting!! (I think that was a direct quote from the Lib Mutual CEO?)

    I will say that the end result of this is that by the end of the year there will be some carriers so deeply in trouble that mergers or acquisitions will be an absolute must. MarketWatcher where are you?

  • August 19, 2009 at 9:22 am
    Former Status Quo says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    Sounds like we have a bitter former LM employee on the message boards today. Someone should probably point out to you that LM does report their results because they are a Mutual Stock Holding company. Although they are privately held and not publicly traded they do to report results. You might want to do some research.

    As for the other carriers, AIG isn’t Barack backed it is Bush backed and Barack only continues to hold it up. Hartford is Barack’s fault as he let the TARP funds apply to them.

    Regarding the pricing models of the three companies, last time i checked their combined ratios were all under 100% which, as any person that works in the industry with half a brain knows, means they are making money. So underwriting aside you cannot bash companies whose P&C operations are making the almight dollar.

  • August 19, 2009 at 10:12 am
    knvbcoach says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    tallyman, my wife is an LM commercial underwriting manager. She doesn’t just sit on her thumbs all day. She and her staff at LM do indeed underwrite.

  • August 19, 2009 at 11:36 am
    matt says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    Did this article really say a storm would be good for the industry?

    Somehow paying $25,000-$150,000 wind claims on $2,500-$15,000 policies followed by a rate increase (not to mention wind assessments from the states) does not seem like a “good deal”… especially as noted above when there are some players that are larger and seemingly less concerned with holding the line on pricing.

    Also let’s not forget that some states have specific legislation prohibiting reductions in terms/material increases in rates due solely to a catastrophic storm event.

    Excuse me for saying it but isn’t this kind of like saying a terrorist attack would be good for national security?

  • August 19, 2009 at 11:56 am
    LOL says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    LOL that’s funny, Matt…b/c terrorist attacks are exceptionally good for national security.

    And Former Status Quo, re: combined ratios, tallyman is referring to current underwriting blunders and mispricing…why would that be reflected in current combined ratios? Those losses won’t be tallied for years. BECAUSE CURRENT COMBINED RATIOS ARE THE RESULT OF PAST UNDERWRITING DECISIONS.

    As anyone w/ half a brain knows.

  • August 19, 2009 at 12:51 pm
    Scott says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    Ever wonder why the insurance industry has a bad reputation? This article is absurd. No responsible person from any insurance Company is hoping for a devastating hurricane to hit the U.S. It’s not just property that would be lost, lives would be lost. They are irreplaceable at any cost.

  • August 19, 2009 at 12:57 pm
    Brian says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    There is no such thing as a hurricane. Hurricanes are just a conspiracy perpetrated by the goverment to land alien warships into the Carribean so they can launch attacks on US Citizens.

  • August 19, 2009 at 2:49 am
    Tired of LM buying Market says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    What is a volleyball coach doing reading Insurance Journal? If your wife is an LM underwriting manager, then I agree – she does not spend her day sitting on her thumbs. She spends most of her day laying down. Because LM and their regional carriers are the biggest whXres and on the street right now.

  • August 19, 2009 at 2:52 am
    WI Agent says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    Silver Lining? Is that a backhanded reference to carriers like West Bend begging for a hard market so that they can start charging higher rates? West Bend in bad bad shape right now becuase of all of their contracting mishaps and misjudgment. We just got rid of them because we can see the black cloud underneath the supposed silver lining.

  • August 19, 2009 at 3:46 am
    Astro says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    LOL @ alien conspiracy theory and Liberty whores.

  • August 19, 2009 at 4:25 am
    VBCoach with head in sand says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    A couple of weeks ago the CEO of Lib Mutual lectured about how his underwriters are practicing underwriting discipline, and are walking away from marginal or aggressively priced business. This is the same guy that would say his dog is a well behaved pet as the dog bites the mailman and every kid in the neighborhood. Dude, O_P_E_N YOUR EYES !! Lib mutual and their regional markets are driving this soft market with their outrageous pricing. And I just spent 2 days with a CL manager from one of the regionals, and he said – we are just getting started!

  • August 20, 2009 at 4:44 am
    nobody says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    Ha! Now the sharks are swarming the waters of the Northeast! Good Luck New Englanders.The sharks bite and when the bite they bite hard.
    The CEO’s/CFO’s need to come up with a way to increase their bonuses so you’re the target now so it seems!
    Good Luck.

  • August 20, 2009 at 4:50 am
    nobody says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    They are making money hand over fist off the general publics hard working backs.
    Well I predicted it. I said the Insurance Co.’s would find another way to reap their billions and so they have.
    Roll up your sleeves claims personnel you are about to embark on a money making mission for those who could give to flying toots about you,work your butt to the bone and the people that think they know everything who have begged.borrowed,cheated and lied will go home fat happy wealthy sharks!

  • August 20, 2009 at 4:53 am
    nobody says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    Matt get with the program. The risk is now there that N.E.COULD have the BIG one and they will have to raise rates to be ready!
    You must not have been in the Insurance Industry for too long!

  • August 20, 2009 at 4:55 am
    nobody says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    You have got to be kidding me! Your statement is ignorant at best!
    Sorry!

  • August 20, 2009 at 4:56 am
    nobody says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    Now here is a person that knows his stuff!

    WAA!

  • August 19, 2009 at 5:01 am
    Richard says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    I worked for Liberty Mutual for 16 years. They expanded in all areas after I left in 2002 to be the force they are today. This company knows exactly what they are doing. Kelly and the gang up in New England got this concept right when it comes to pricing, payout and forecasting. I don’t toot their horn but they are what they are now. Now as a independent Cat adjuster…hell yeah I want disasters so I can get paid. Nothing wrong with that since it’s the American way….Let’s go Bill !!!

  • August 20, 2009 at 9:45 am
    RamRod says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    LM has a slightly less-than-stellar reputation for underwriting?!? Really? They don’t hold a candle to the government-subsidized wh*res at Lexington and their spin-offs Gemini and IronShore! It is true that Bush started us (unknowingly I might add) down the road of wiping out the free enterprise system in America.

    By the way, how’s that “Hope and Change” workin’ out for you?

  • August 20, 2009 at 9:55 am
    matt says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    You can have your east coast storms just keep them out of the gulf!

  • August 20, 2009 at 3:34 am
    nobody says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    Agreed with keeping them out of the Gulf!

    Is one Insurance Company any better than another? I mean really! Neither wants to pay and they all want to raise premiums based on their round table meetings at which time they throw hypothesis of what’s to come weatherwise!
    Get real and face reality.They ned to raise rates to compensate themselves,the executives not to pay claims!

  • August 25, 2009 at 1:22 am
    Scott says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    Ok, I’m ignorant. So would you please enlighten me by naming one insurance executive that has publicly stated they wish for hurricane induced catastrophic property damage in the U.S. and the accompanying death toll?



Add a Comment

Your email address will not be published. Required fields are marked *

*