Double standard. The Government can run a program into the dirt with big losses that are pushed to the state tax payers and nothing but a change of control from one government administration to another. Life is good. Wish private industry could get such a good deal.
So let me get this straight, one government agency is taking over another and it is going to “RUN IT BETTER!!!”
Maybe we ought to look at deregulating the rates in the coastal areas and not having TWIA rates subsidized by the taxpayers of Texas. And then the private market might sell a few more policies…. or do we still believe in private markets?
It’s funny how they call TWIA an “Insurer of last resort” when they subsidize the rates. It quickly became and insurer of FIRST resort due to the low premiums. It’s a crying shame. People in North Texas pay not only for their hail exposure, but they also have to subsidize the people who CHOOSE to live on the coast. Why the government allows TWIA to operate on a non-actuarily sound business model beats me…
Tony, you say low premiums and subsidized rates? I pay over $1600 a year on $85 coverage for the TWIA policy that is for only windstorm. I then have to pay for my full homeowners on top of that! I live many many miles from the gulf but in the area they consider the Gulf Coast…I doubt the people in north Texas pay $2600 a year for $85,000 in coverage. Give me a break. Tell me who is getting subsidized. Then TWIA pays 16% commission to the agent who writes the policy. This program is poorly run and was set up by the Gulf Coast Texas State Represenatives who owns his own Insurance Agency. Sorry this is all political and only a few are making a profit from it.
I suppose you think the agent is going to work for free, of course, his office is free, his staff is free, supplies are free, AND the E&O we have to buy is free!!!!
Ike was the third largest cat in US history, 12 Billion in losses, that money should come from the areas that present the risk.
Looks like the best time for a few carriers to move into and battle for this great business. Who in the world knows what the market rate should be for wind storm coverage. Just think if “TWIA” had to compete for this business, how low could they get the rate.
Carriers (mostly non admitted) have tried to price the risk accurately and compete with TWIA, but a funny happens, consumers don’t like to pay more for any reason… so as long as there is subsidy, TWIA will be the primary option for Tier 1 consumers.
One of the fundamentals of this business is to walk away when the appropriate premium cannot be obtained. The insurance graveyard is full of wealthy risk takers who tried to get around this very important rule. I hope we don’t have to add the government to this list…
Gulf Coast Res, do some research. TWIA rates ARE subsidized via assessments to the carriers operating in Texas. So anyone, in inland counties pay premiums to carriers who pay assessments. Period! So lets go over the facts, 254 counties, of which 14 are TWIA eligible counties. ASSESSMENTS FROM THE INLAND COUNTIES, ALONG WITH TWIA PREMIUMS SUPPORT THE TEXAS WIND POOL. If these subsidies are removed, and the wind pool forced to operate a actuarially sound rating model, you would have HUGE rate increases, and those of us who CHOOSE to live inland would not be required to subsidize YOUR insurance. Thanks, and enjoy OUR subsidy.
Sincerely,
Anonymous Texas Property Underwriter
The rates for windstorm are not exactly on the low side… And for insurance to work accordingly, insurance 101, you have to spread the risk… If we move off the coast, then who will run the refineries that provides you with gas, and the port that provides you with goods and ships your goods out, and millitary installations that protect our conuntry.. So you see the Gulf Coast is vital to the state economicly. We all are going to have to pay one way or another! FIX IT TEXAS!
On that same point, then we should insure Charlie Sheen, just to spread the risk and because someone has to star in a cruddy tv program… Get real.
Actuarial tables exist for a reason, and companies that don’t price their risk accordingly fall by the wayside. Should you pay higher auto rates because some drunken teenager 300 miles away is in the program? No. All teens pay higher rates to offset that risk. And the residents of Texas who CHOOSE to live inland should not have to subsidize residents who CHOOSE to live on the coast, for ANY reason. Think about what you are proposing…
Double standard. The Government can run a program into the dirt with big losses that are pushed to the state tax payers and nothing but a change of control from one government administration to another. Life is good. Wish private industry could get such a good deal.
Mike Geeslin is incompetent he has never run a business and is a clown, the very idea that his office can run anything is funny if not so sad….
Sounds like you work for State Farm…
So let me get this straight, one government agency is taking over another and it is going to “RUN IT BETTER!!!”
Maybe we ought to look at deregulating the rates in the coastal areas and not having TWIA rates subsidized by the taxpayers of Texas. And then the private market might sell a few more policies…. or do we still believe in private markets?
It’s funny how they call TWIA an “Insurer of last resort” when they subsidize the rates. It quickly became and insurer of FIRST resort due to the low premiums. It’s a crying shame. People in North Texas pay not only for their hail exposure, but they also have to subsidize the people who CHOOSE to live on the coast. Why the government allows TWIA to operate on a non-actuarily sound business model beats me…
Tony, you say low premiums and subsidized rates? I pay over $1600 a year on $85 coverage for the TWIA policy that is for only windstorm. I then have to pay for my full homeowners on top of that! I live many many miles from the gulf but in the area they consider the Gulf Coast…I doubt the people in north Texas pay $2600 a year for $85,000 in coverage. Give me a break. Tell me who is getting subsidized. Then TWIA pays 16% commission to the agent who writes the policy. This program is poorly run and was set up by the Gulf Coast Texas State Represenatives who owns his own Insurance Agency. Sorry this is all political and only a few are making a profit from it.
I suppose you think the agent is going to work for free, of course, his office is free, his staff is free, supplies are free, AND the E&O we have to buy is free!!!!
Ike was the third largest cat in US history, 12 Billion in losses, that money should come from the areas that present the risk.
Looks like the best time for a few carriers to move into and battle for this great business. Who in the world knows what the market rate should be for wind storm coverage. Just think if “TWIA” had to compete for this business, how low could they get the rate.
Carriers (mostly non admitted) have tried to price the risk accurately and compete with TWIA, but a funny happens, consumers don’t like to pay more for any reason… so as long as there is subsidy, TWIA will be the primary option for Tier 1 consumers.
One of the fundamentals of this business is to walk away when the appropriate premium cannot be obtained. The insurance graveyard is full of wealthy risk takers who tried to get around this very important rule. I hope we don’t have to add the government to this list…
Gulf Coast Res, do some research. TWIA rates ARE subsidized via assessments to the carriers operating in Texas. So anyone, in inland counties pay premiums to carriers who pay assessments. Period! So lets go over the facts, 254 counties, of which 14 are TWIA eligible counties. ASSESSMENTS FROM THE INLAND COUNTIES, ALONG WITH TWIA PREMIUMS SUPPORT THE TEXAS WIND POOL. If these subsidies are removed, and the wind pool forced to operate a actuarially sound rating model, you would have HUGE rate increases, and those of us who CHOOSE to live inland would not be required to subsidize YOUR insurance. Thanks, and enjoy OUR subsidy.
Sincerely,
Anonymous Texas Property Underwriter
The rates for windstorm are not exactly on the low side… And for insurance to work accordingly, insurance 101, you have to spread the risk… If we move off the coast, then who will run the refineries that provides you with gas, and the port that provides you with goods and ships your goods out, and millitary installations that protect our conuntry.. So you see the Gulf Coast is vital to the state economicly. We all are going to have to pay one way or another! FIX IT TEXAS!
On that same point, then we should insure Charlie Sheen, just to spread the risk and because someone has to star in a cruddy tv program… Get real.
Actuarial tables exist for a reason, and companies that don’t price their risk accordingly fall by the wayside. Should you pay higher auto rates because some drunken teenager 300 miles away is in the program? No. All teens pay higher rates to offset that risk. And the residents of Texas who CHOOSE to live inland should not have to subsidize residents who CHOOSE to live on the coast, for ANY reason. Think about what you are proposing…