This is such a tired concept. Can anyone name one storm that has affected overall P&C rate environment? Katrina…Andrew… Ike? All bad storms with virually no impact on the overall market. CATs like the ones mentioned here are likely to soften up rates in other parts of the country as those carriers taking a haircut from big storms seek to make it up elsewhere.
Ike had some impact on overall ratings and companies rethinking of exposure all in itself. After Ike Allstate stopped selling homeowners policies in the tier 1 and 2. Other companies raised rates to make up for losses and exposure.
For the last several years we have seen the availibility of property coverage diminish on the Texas Gulf Coast. Many carriers are dealing with the problem by requiring 2%, 3%, and even 5% wind or named storm deductibles. Others have just stopped writing in 1st or 2nd tier counties. There is also a substantial rate difference between Coastal and Inland counties. In some cases it is triple. I have to wonder how much more upward pricing our market can handle before people start going bare or the ability of new buyers to purchase is affected.
Perhaps a hurricane won’t push rate levels higher, but maybe an EQ on the East Coast, where hundreds of insurance and reinsurance companies are HQ’d would do the trick? Nah! Not likely to see an East Coast EQ for many years,,,
Can we at least wait for the storm to make landfall before we start talking about rate increases?
Heard this before…..
This is such a tired concept. Can anyone name one storm that has affected overall P&C rate environment? Katrina…Andrew… Ike? All bad storms with virually no impact on the overall market. CATs like the ones mentioned here are likely to soften up rates in other parts of the country as those carriers taking a haircut from big storms seek to make it up elsewhere.
Ike had some impact on overall ratings and companies rethinking of exposure all in itself. After Ike Allstate stopped selling homeowners policies in the tier 1 and 2. Other companies raised rates to make up for losses and exposure.
For the last several years we have seen the availibility of property coverage diminish on the Texas Gulf Coast. Many carriers are dealing with the problem by requiring 2%, 3%, and even 5% wind or named storm deductibles. Others have just stopped writing in 1st or 2nd tier counties. There is also a substantial rate difference between Coastal and Inland counties. In some cases it is triple. I have to wonder how much more upward pricing our market can handle before people start going bare or the ability of new buyers to purchase is affected.
Perhaps a hurricane won’t push rate levels higher, but maybe an EQ on the East Coast, where hundreds of insurance and reinsurance companies are HQ’d would do the trick? Nah! Not likely to see an East Coast EQ for many years,,,