If the expense allowances are thought to be too high, and there is no underwriting risk, why would WYO carriers be withdrawing, year after year?
It seems the decisions are unique to each company that withdrew, but the claim handling process and premium hikes that are creating ill-will with the policy holders is damaging the branding / good-will / reputation of the WYO carriers.
There is no easy solution to restoring the WYO carriers reputation, so the costs should be addressed through tighter underwriting, loss control and hazard mitigation / avoidance. So, let’s sit back, chill out, and watch the Federal Govt and Congress fix those problems. Oh, wait! Never mind.
Travelers got out of this market a couple of years ago. Looks like a trend to me. I really can’t see the private market ever taking over completely to offer Flood. The exposure for catastrophies is just too great. They have enough trouble with Hurricanes, Tornados. Saw an article just yesterday that Katrina losses adjusted for inflation was $48.8 Billion and they are still rebuilding New Orleans 10 years later.
“continue to build on our leadership position in the flood insurance market.”
This is not a mantra I ever want from my current employer. If our CEO ever states this, I am gone the same day.
Steve, if the private market has to handle this, the premiums are going to skyrocket because the exposure is astronomical. I believe that is the only way to stop the construction in areas far too prone to flooding.
If the expense allowances are thought to be too high, and there is no underwriting risk, why would WYO carriers be withdrawing, year after year?
It seems the decisions are unique to each company that withdrew, but the claim handling process and premium hikes that are creating ill-will with the policy holders is damaging the branding / good-will / reputation of the WYO carriers.
There is no easy solution to restoring the WYO carriers reputation, so the costs should be addressed through tighter underwriting, loss control and hazard mitigation / avoidance. So, let’s sit back, chill out, and watch the Federal Govt and Congress fix those problems. Oh, wait! Never mind.
Travelers got out of this market a couple of years ago. Looks like a trend to me. I really can’t see the private market ever taking over completely to offer Flood. The exposure for catastrophies is just too great. They have enough trouble with Hurricanes, Tornados. Saw an article just yesterday that Katrina losses adjusted for inflation was $48.8 Billion and they are still rebuilding New Orleans 10 years later.
or better yet, eliminate FEMA and let the private industry address any/all insurance needs of the general public.
“continue to build on our leadership position in the flood insurance market.”
This is not a mantra I ever want from my current employer. If our CEO ever states this, I am gone the same day.
Steve, if the private market has to handle this, the premiums are going to skyrocket because the exposure is astronomical. I believe that is the only way to stop the construction in areas far too prone to flooding.