If it is going to cost so much in legal fees for the 2,000 cases, maybe it would be cheaper to just settle up?
This situation is typical when government gets involved with business. Yet they continue to find ways to interject themselves and interfere with business operations.
Jack, It was real estate developers and banks that pleaded with and lobbied the Gov to get it to the flood business. No insurer would provide a market and the banks collateral (homes) need to be protected. How else could they develop flood prone areas.
It’s good to see the boldness of the director in front of congress as he is leaving. Obviously he didn’t have the backbone to make these statements when he was running FEMA.
Yes Big Jim, but his main point is the government could be doing it better which is clearly not the case with most things. I sell flood and the program has become too complicated. The latest round of laws is over the top complicated.
Perhaps the government should let a few private sector companies come up with a program and be a backstop for it, say like a re insurer. There has to be a more straightforward way to provide flood insurance.
Govt interference… They just made a mess of my Health insurance – changed the billing method from Auto Check to direct paper bill – per BCBS “because that’s what they do”.
So it sounds like the government wants to be more involved in a failing government program instead of directing the program as they were supposed to. That means setting rules and guidelines for the WYO’s to follow. The other thing I cant understand is that the servicers make boat loads of money on claims handling. It makes no sense that they would deny claims that should be paid. They get paid if they pay claims not deny them.
The governemnt should never have been involved unless one believes in a Communist system. The government tends to screw up anything they are involved with that they shouldn’t be. They even have a tough time getting things right with things that they should be involved with: National Defense, Public Works, etc. The sooner they are out of this, the better. Let the profit incentive help set the prices for this insurance and then people will be less likely to build where they shouldn’t or at least deal with the consequences of bad decisions.
The thing that caught my eye was the 33% administrative fee the WYO insurance carriers get. When those same carriers shift work from themselves to me, it usually comes with a commission decrease.
I think it is funny that people are blaming the government exclussively for this mess. As if this has nothing to do with the private insurers and adjusting firms they hired. What a joke. This is also what you get when you don’t fund programs properly so they can do their job effectively. Although, I suppose a government agency being effective is wishful thinking even if it is properly funded.
I can think of numerous debacles by corporations. Shoot, you see articles here on IJ almost every day at least one business or businessman investigated, arrested, convicted or fined for one thing or another. Sorry, the private sector is as full of rats as the government sector.
Difference is that when a corporation makes a mistake, they and their shareholders pay for it. When the government makes a mistake, you and I pay. When I have no choice in the matter, it gets me upset.
Why is the federal government even in the flood insurance business?
“Insurers have also noted that more than 99 percent of all Sandy claims were paid and closed efficiently.”
Why not mimic the better private insurance carriers flood insurance routine?
The Federal flood program already controls 70% of market.
This may be another unintentionally power grab (like the student loan program).
Why use the Sandy, New Jersey as a “crisis” to increase size of federal government?
Doug Spencer, my understanding is that the private market just hasn’t wanted to write flood business of their own. That is why the government jumped in. I tend to agree though, the government shouldn’t be getting into the insurance business. My thought is… perhaps people shouldn’t be building in flood zones.
The private market will insure almost anything for the “right” price. And there may be certain places where they wouldn’t insure against flood. And those are the places people shouldn’t be building. That’s the whole point of getting this back to the private market. The profit incentive allows for rational decisions. The political motivations of the government allows for bad decisions.
Bill- 25% of ALL flood claims occur in areas that are called “not flood zones” by people like yourself everyday. You can’t predict where it’s going to flood when it rains 10 inches in a 24 hour period. So let me tell you where this is headed.
EVERYONE IS FORCED TO BUY FLOOD INSURANCE. You know…kinda like OBAMACARELESS.
The issue in my opinion is that the government has done a poor management job in oversight of the WYO companies, now they are blaming the WYO companies to be the problem…they must keep agents in this process as the front line. I can promise you that homeowners would rather deal with their agent and not the government directly. The government is the problem on this one. The WYO companies are a great resource for us agents and I believe do a great job on education. Maybe mKe it a mandatory thing to require so much flood education if you sell it. The answer is certainly not removing WYO companies or agents. Not only is this a bad idea, but it would damage many agencies that write a lot of flood insurance.
Not too mention no would buy flood insurance if it wasn;t for the agents. Do you know how I have to plead with someone that they need flood insurance when I sell them a homeowners policy? If you take agents out of the equation the only time people would buy flood is when a lender requires the flood on a federal loan. The result would be the only people buying flood insurance will be from high risk zones, and nothing from the lower risk zones. Where is your spread of risk then?
As an Adjuster that refuses to work for WYO Companies, I told FEMA/NFIP when you allow the WYO adjusters handle both the “wind “claim and the “flood” claim the outcome will be what we see now. (called the Single Adjuster concept)WYO Companies reverse the higher claims cost to “flood” when it should have gone toward “wind”.
WYO Companies are in a win win situation, if the premiums do not cover the claims cost FEMA or more specifically our tax dollars goes to reimbursing them.
Kieserman is just another typical bureaucrat blaming everyone involved except his department for the troubles of the Flood program. The program absolutely has flaws, congress makes sure of that on an ongoing basis. Nine pages of testimony/finger pointing and less than one full page that vaguely states a plan for reform. Enough with the penguins already, Kieserman saw the obvious and jumped from the iceberg.
In response to Bill. You are correct there are many rats and debacles within the corporate world. Those businesses close down, pay fines and owners are indicted. Their is restitution for shareholders, victims.
With the government in charge there is no where else to turn for the consumer, the officials leave like this gentleman has with no accountability. That is the problem with Government run entities. A person cannot fight the inane rules regulations and processes put forth to mitigate the governments liability and accountability to anyone. That is the issue that I believe most posters are trying to convey.
Good point Andrew. My point wasn’t to say the government didn’t have problems. Just that problems exist on both sides. I have no solution for that and I am sure none of the rest of you do either.
This administration excels at euphemism. For example, “investment” sounds better than spending. And, “insurance” sounds better than redistribution. But if its taxpayer-funded and doesn’t benefit everyone, its redistribution disguised as insurance. My individual health insurance premium went way up to pay for poor people’s health care. My tax dollars insure pensions but I don’t have a pension. And my tax dollars insure flood for oceanfront homes, but I live in the desert.
I don’t want this so-called insurance. If as a society we vote to have it, I must accept that, but lets recognize a duck as a duck.
And “enhanced interrogation techniques” sounds a lot better than “torture.” I’m just saying that every administration uses euphemisms to make things sound better than they really are — it’s not just Obama’s administration; they all do it.
If it is going to cost so much in legal fees for the 2,000 cases, maybe it would be cheaper to just settle up?
This situation is typical when government gets involved with business. Yet they continue to find ways to interject themselves and interfere with business operations.
Jack, It was real estate developers and banks that pleaded with and lobbied the Gov to get it to the flood business. No insurer would provide a market and the banks collateral (homes) need to be protected. How else could they develop flood prone areas.
We have government flood insurance because no private insurer wanted to insure against floods.
Smart Business decision. Stay away from the water!
It’s seems like a no-brainer. Don’t insure what can’t be mitigated.
Additionally, why would anyone WANT to live where their property will be under water (literally)?
It’s good to see the boldness of the director in front of congress as he is leaving. Obviously he didn’t have the backbone to make these statements when he was running FEMA.
Yes Big Jim, but his main point is the government could be doing it better which is clearly not the case with most things. I sell flood and the program has become too complicated. The latest round of laws is over the top complicated.
Perhaps the government should let a few private sector companies come up with a program and be a backstop for it, say like a re insurer. There has to be a more straightforward way to provide flood insurance.
Sound like we may be heading back to the saying “I am the Government and I am here to Help.” The flood mess continues.
Govt interference… They just made a mess of my Health insurance – changed the billing method from Auto Check to direct paper bill – per BCBS “because that’s what they do”.
They will never learn.
No, you mean WE will never learn…. and slowly but surely the government takes more and more power and “authority.”
So it sounds like the government wants to be more involved in a failing government program instead of directing the program as they were supposed to. That means setting rules and guidelines for the WYO’s to follow. The other thing I cant understand is that the servicers make boat loads of money on claims handling. It makes no sense that they would deny claims that should be paid. They get paid if they pay claims not deny them.
The governemnt should never have been involved unless one believes in a Communist system. The government tends to screw up anything they are involved with that they shouldn’t be. They even have a tough time getting things right with things that they should be involved with: National Defense, Public Works, etc. The sooner they are out of this, the better. Let the profit incentive help set the prices for this insurance and then people will be less likely to build where they shouldn’t or at least deal with the consequences of bad decisions.
Yeah, but that’s common sense. Not gonna happen.
The thing that caught my eye was the 33% administrative fee the WYO insurance carriers get. When those same carriers shift work from themselves to me, it usually comes with a commission decrease.
I think it is funny that people are blaming the government exclussively for this mess. As if this has nothing to do with the private insurers and adjusting firms they hired. What a joke. This is also what you get when you don’t fund programs properly so they can do their job effectively. Although, I suppose a government agency being effective is wishful thinking even if it is properly funded.
I can think of numerous debacles by corporations. Shoot, you see articles here on IJ almost every day at least one business or businessman investigated, arrested, convicted or fined for one thing or another. Sorry, the private sector is as full of rats as the government sector.
Difference is that when a corporation makes a mistake, they and their shareholders pay for it. When the government makes a mistake, you and I pay. When I have no choice in the matter, it gets me upset.
Not always … sometimes when a corporation makes a mistake, it gets bailed out by the taxpayers
Why is the federal government even in the flood insurance business?
“Insurers have also noted that more than 99 percent of all Sandy claims were paid and closed efficiently.”
Why not mimic the better private insurance carriers flood insurance routine?
The Federal flood program already controls 70% of market.
This may be another unintentionally power grab (like the student loan program).
Why use the Sandy, New Jersey as a “crisis” to increase size of federal government?
Doug Spencer, my understanding is that the private market just hasn’t wanted to write flood business of their own. That is why the government jumped in. I tend to agree though, the government shouldn’t be getting into the insurance business. My thought is… perhaps people shouldn’t be building in flood zones.
The private market will insure almost anything for the “right” price. And there may be certain places where they wouldn’t insure against flood. And those are the places people shouldn’t be building. That’s the whole point of getting this back to the private market. The profit incentive allows for rational decisions. The political motivations of the government allows for bad decisions.
Good point Dave. I agree.
Bill- 25% of ALL flood claims occur in areas that are called “not flood zones” by people like yourself everyday. You can’t predict where it’s going to flood when it rains 10 inches in a 24 hour period. So let me tell you where this is headed.
EVERYONE IS FORCED TO BUY FLOOD INSURANCE. You know…kinda like OBAMACARELESS.
LEAN FORWARD AMERICA.
The issue in my opinion is that the government has done a poor management job in oversight of the WYO companies, now they are blaming the WYO companies to be the problem…they must keep agents in this process as the front line. I can promise you that homeowners would rather deal with their agent and not the government directly. The government is the problem on this one. The WYO companies are a great resource for us agents and I believe do a great job on education. Maybe mKe it a mandatory thing to require so much flood education if you sell it. The answer is certainly not removing WYO companies or agents. Not only is this a bad idea, but it would damage many agencies that write a lot of flood insurance.
Not too mention no would buy flood insurance if it wasn;t for the agents. Do you know how I have to plead with someone that they need flood insurance when I sell them a homeowners policy? If you take agents out of the equation the only time people would buy flood is when a lender requires the flood on a federal loan. The result would be the only people buying flood insurance will be from high risk zones, and nothing from the lower risk zones. Where is your spread of risk then?
I’m smart enough to get off an iceberg that has drifted too far south. The Fed? Not so much.
The NFIP should be eliminated, gradually. Mitigation and loss prevention are the solutions, not taxation and subsidies for inevitable losses.
As an Adjuster that refuses to work for WYO Companies, I told FEMA/NFIP when you allow the WYO adjusters handle both the “wind “claim and the “flood” claim the outcome will be what we see now. (called the Single Adjuster concept)WYO Companies reverse the higher claims cost to “flood” when it should have gone toward “wind”.
WYO Companies are in a win win situation, if the premiums do not cover the claims cost FEMA or more specifically our tax dollars goes to reimbursing them.
Kieserman is just another typical bureaucrat blaming everyone involved except his department for the troubles of the Flood program. The program absolutely has flaws, congress makes sure of that on an ongoing basis. Nine pages of testimony/finger pointing and less than one full page that vaguely states a plan for reform. Enough with the penguins already, Kieserman saw the obvious and jumped from the iceberg.
In response to Bill. You are correct there are many rats and debacles within the corporate world. Those businesses close down, pay fines and owners are indicted. Their is restitution for shareholders, victims.
With the government in charge there is no where else to turn for the consumer, the officials leave like this gentleman has with no accountability. That is the problem with Government run entities. A person cannot fight the inane rules regulations and processes put forth to mitigate the governments liability and accountability to anyone. That is the issue that I believe most posters are trying to convey.
Good point Andrew. My point wasn’t to say the government didn’t have problems. Just that problems exist on both sides. I have no solution for that and I am sure none of the rest of you do either.
This administration excels at euphemism. For example, “investment” sounds better than spending. And, “insurance” sounds better than redistribution. But if its taxpayer-funded and doesn’t benefit everyone, its redistribution disguised as insurance. My individual health insurance premium went way up to pay for poor people’s health care. My tax dollars insure pensions but I don’t have a pension. And my tax dollars insure flood for oceanfront homes, but I live in the desert.
I don’t want this so-called insurance. If as a society we vote to have it, I must accept that, but lets recognize a duck as a duck.
And “enhanced interrogation techniques” sounds a lot better than “torture.” I’m just saying that every administration uses euphemisms to make things sound better than they really are — it’s not just Obama’s administration; they all do it.