You know all of those major hurricanes and tornadoes that cause massive destruction to homes and businesses in the United States? Well, the AIG that you are knocking is the only insurance carrier who can afford to pay those claims and does. AIG pays out billions to American taxpayers every year because they are still standing. And, by the way, the American taxpayers stand to make a nice profit out of the money lent to AIG.
Everybody needs someone to blame, it’s only human. Try pointing the finger at Bush Jr.!
That is why Chartis is hiking their premiums up on CAT related business a minimum of 15%!!
As for CAT writers, there are still plenty of fish in the sea with capital (ex. Ironshore). In addition, there are other carriers (Traveler’s, Zurich, FM Global, etc) to meet demand. The only difference between these carriers and Chartis is that these underwriters take time to analyze the exposures, understand the hazards and implement proper risk management techniques.
On the one hand he/she says AIG is raising rates min 15%, then says plenty of other markets have the CAT capacity to absorb the AIG writings and that AIG does not have the “risk mamnagement techniques” nor underwriting acumen on par with the other carriers. While one or the other statement can be true, taken together they don’t make sense. If AIG didn’t know what they’re doing, why raise rates? It’s still a free market and insureds can move from AIG to another carrier. Frankly the other markets are happy to see AIG taking rate actions (which has been going on for at least 12 months now)– the other carriers are raising CAT rates, too. To lump Ironshore in with carriers the size of AIG, Travelers, Zurich or FM is nonsense, unless you want to quota-share a 5-10M line.
FM is a mutual company that, by nature, operates differently than AIG or the other stock companies mentioned. I don’t think they’re tanking, but they were hit pretty hard with CATs last year and took an underwriting loss, so instead of “loyalty bonuses” to their owners (the policy holders), they have to raise rates too.
I’m thinking maybe Mr./Ms 102 must be an insurance company executive – the best of them have cleft palates — makes it easier to talk out of both sides of their mouth at the same time.
June 29, 2012 at 2:20 pm
Sarah C. says:
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You know all of those major hurricanes and tornadoes that cause massive destruction to homes and businesses in the United States? Well, the AIG that you are knocking is the only insurance carrier who can afford to pay those claims and does. AIG is able to pay out billions to American taxpayers every year because they are still standing.
It seems to me that since they were able to repay the bailout money so quickly, they really didn’t need it after all. Maybe they weren’t too big to fail.
I don’t know. Everybody complains about AIG, and every time I turn around, there they are. For a company that has been taking ever since I’ve been in the business (more than 10 years), i’d say they have a good track record. What’s that? Who? Chicken Little? What sky? Huh?
Subterfuge: Real reason for the name change. We can’t take Chartis public b/c of 5 years in a row of underwriting losses and a combined ratio of over 100 in the past 5 years. Some “bench strength” they got there.
@ Sara C. — Of course AIG can pay out on their claims. It is OUR tax money backing them up!!! Take away the bailout(s) and AIG would have been dead in the water years ago. They have zero underwriting skill and their “plan of action” is to simply find profitable accounts with other Carriers and try to underbid them. That model doesn’t work in insurance.
Did you really blame Bush Jr. in the above post? Really?! Almost 4 years later and you still want to blame him? LOL I think the present administration has done more to ruin this Nation than any in the previous 200+ years. I grew up under R.R. and do not recall him EVER blaming the previous President. Then again, he wasn’t a Socialist.
UCT, you obviously do know what you are talking about, once again it was not the Insurance arm that tanked, it was the financial lines that was part of Wall Street, 2 seperate entities.
Hey Dude, point out another company in this economy that is not over 100% when they are not balancing their books through drawing down of Reserves that will bite them in the arse in a few years.
Agree on the Bush comment, move along looky loos nothing to see here except an inept administration that is in over their heads and will be booted out in November..
Under,
Looks like you bought what AIG was selling! Why do you think AIG set up this massive financial line? It was because for years before & in to the future AIG management/Greenberg knew he could not make the same returns in the insurance line that he had made for decades.
This financial line was purposely set up so that the micro manager
Greenberg could then say, when it went under, that he had no idea what his own executives were doing. Anyone on this board, that ever got a call from Greenberg in the early morning, on a weekend, knows what I am talking about.
@Underbroker – I deal with “Chartis/AIG” on an everyday basis. I am quite familiar with how that company is(n’t) run. The insurance arm of AIG has been shuffled, reshuffled and shuffled again. Nobody really knows how their financials look. How can you know how they look when the books are inconsistently reported? I will say this; It will not shock me in the least if they need a bailout someday as well. I run up against them frequently and NEVER see them go after business that isn’t already written by Chubb or ACE.
when an insurance cnapmoy can and cannot cancel your policy. Your state legislators pass the laws that say when and how companies including insurance companies can behave. Any insurance cnapmoy underwriter, has to make decisions within the state law. The underwriter’s supervisor, would be the VP of Underwriting, in your state, at the cnapmoy level. But at the insurance cnapmoy level, they do it when state laws say they can do it. The underwriters for homeowners policies, basically just look at the cnapmoy manual (which has been reviewed by the cnapmoy lawyers) and says, the book says, if you don’t fix your house so people can escape in a fire, we can cancel you for increase in hazard.
AIG, Chartis, The evil empire. Same name – same company – they suck
agents hate them, brokers love them. Hey, it’s business.
Same name again? It does not change the fact that this is simply reshuffling the deck chairs of the Titanic.
Why don’t they wait until they screw up under the Chartis name?
You know all of those major hurricanes and tornadoes that cause massive destruction to homes and businesses in the United States? Well, the AIG that you are knocking is the only insurance carrier who can afford to pay those claims and does. AIG pays out billions to American taxpayers every year because they are still standing. And, by the way, the American taxpayers stand to make a nice profit out of the money lent to AIG.
Everybody needs someone to blame, it’s only human. Try pointing the finger at Bush Jr.!
That is why Chartis is hiking their premiums up on CAT related business a minimum of 15%!!
As for CAT writers, there are still plenty of fish in the sea with capital (ex. Ironshore). In addition, there are other carriers (Traveler’s, Zurich, FM Global, etc) to meet demand. The only difference between these carriers and Chartis is that these underwriters take time to analyze the exposures, understand the hazards and implement proper risk management techniques.
FM Global, eh? They are the industry standard in prudent financial responsibility.
You talk like a man with a paper head. That makes no sense at all.
My post was sarcastic. Anyone with any basic knowledge of the marketplace would know that FM Global is tanking.
Never mind. MF Global != FM Global.
Blaming the 7/1 workload.
Hey JP, my reply was to INS 102, not you.
On the one hand he/she says AIG is raising rates min 15%, then says plenty of other markets have the CAT capacity to absorb the AIG writings and that AIG does not have the “risk mamnagement techniques” nor underwriting acumen on par with the other carriers. While one or the other statement can be true, taken together they don’t make sense. If AIG didn’t know what they’re doing, why raise rates? It’s still a free market and insureds can move from AIG to another carrier. Frankly the other markets are happy to see AIG taking rate actions (which has been going on for at least 12 months now)– the other carriers are raising CAT rates, too. To lump Ironshore in with carriers the size of AIG, Travelers, Zurich or FM is nonsense, unless you want to quota-share a 5-10M line.
FM is a mutual company that, by nature, operates differently than AIG or the other stock companies mentioned. I don’t think they’re tanking, but they were hit pretty hard with CATs last year and took an underwriting loss, so instead of “loyalty bonuses” to their owners (the policy holders), they have to raise rates too.
I’m thinking maybe Mr./Ms 102 must be an insurance company executive – the best of them have cleft palates — makes it easier to talk out of both sides of their mouth at the same time.
You know all of those major hurricanes and tornadoes that cause massive destruction to homes and businesses in the United States? Well, the AIG that you are knocking is the only insurance carrier who can afford to pay those claims and does. AIG is able to pay out billions to American taxpayers every year because they are still standing.
Interesting. Will Sagepoint Financial and VALIC be re-branded under the AIG name as well?
It seems to me that since they were able to repay the bailout money so quickly, they really didn’t need it after all. Maybe they weren’t too big to fail.
It’s not the name but the leadership that counts.
I don’t know. Everybody complains about AIG, and every time I turn around, there they are. For a company that has been taking ever since I’ve been in the business (more than 10 years), i’d say they have a good track record. What’s that? Who? Chicken Little? What sky? Huh?
Subterfuge: Real reason for the name change. We can’t take Chartis public b/c of 5 years in a row of underwriting losses and a combined ratio of over 100 in the past 5 years. Some “bench strength” they got there.
@ Sara C. — Of course AIG can pay out on their claims. It is OUR tax money backing them up!!! Take away the bailout(s) and AIG would have been dead in the water years ago. They have zero underwriting skill and their “plan of action” is to simply find profitable accounts with other Carriers and try to underbid them. That model doesn’t work in insurance.
Did you really blame Bush Jr. in the above post? Really?! Almost 4 years later and you still want to blame him? LOL I think the present administration has done more to ruin this Nation than any in the previous 200+ years. I grew up under R.R. and do not recall him EVER blaming the previous President. Then again, he wasn’t a Socialist.
UCT, you obviously do know what you are talking about, once again it was not the Insurance arm that tanked, it was the financial lines that was part of Wall Street, 2 seperate entities.
Hey Dude, point out another company in this economy that is not over 100% when they are not balancing their books through drawing down of Reserves that will bite them in the arse in a few years.
Agree on the Bush comment, move along looky loos nothing to see here except an inept administration that is in over their heads and will be booted out in November..
Under,
Looks like you bought what AIG was selling! Why do you think AIG set up this massive financial line? It was because for years before & in to the future AIG management/Greenberg knew he could not make the same returns in the insurance line that he had made for decades.
This financial line was purposely set up so that the micro manager
Greenberg could then say, when it went under, that he had no idea what his own executives were doing. Anyone on this board, that ever got a call from Greenberg in the early morning, on a weekend, knows what I am talking about.
@Underbroker – I deal with “Chartis/AIG” on an everyday basis. I am quite familiar with how that company is(n’t) run. The insurance arm of AIG has been shuffled, reshuffled and shuffled again. Nobody really knows how their financials look. How can you know how they look when the books are inconsistently reported? I will say this; It will not shock me in the least if they need a bailout someday as well. I run up against them frequently and NEVER see them go after business that isn’t already written by Chubb or ACE.
AIG is back…….A.nother I.nsurance G.amble!
when an insurance cnapmoy can and cannot cancel your policy. Your state legislators pass the laws that say when and how companies including insurance companies can behave. Any insurance cnapmoy underwriter, has to make decisions within the state law. The underwriter’s supervisor, would be the VP of Underwriting, in your state, at the cnapmoy level. But at the insurance cnapmoy level, they do it when state laws say they can do it. The underwriters for homeowners policies, basically just look at the cnapmoy manual (which has been reviewed by the cnapmoy lawyers) and says, the book says, if you don’t fix your house so people can escape in a fire, we can cancel you for increase in hazard.
This is smart move by AIG. Very smart. That is all