Glad to see that Citizens is preparing irrespective of the rate freeze and other predicaments imposed by legislature (versus taking the approach of just waiting for an event and working assessments). Purchase of private market reinsurance in addition to the CAT fund reinsurance is a step in the right direction for the company. Sounds like management is making things happen to lessen the impact of potential future assessments.
It is really disturbing that this story paints Citizens as financially solvent and able to handle anything other than a small event storm. Lets not forget that we still have assessments for the next 8 years to pay back POST-EVENT for claims in 2004-2005
This carrier has rates frozen for the next 18 months, pretty good policy forms compared to the take out companies, and the ability to push the losses on to the backs of everyone else when they have to pay a claim. I’m sorry but what are the elected officials thinking when they allow, no create this kind of mess. Remember this in November when we can clean house (& Senate) of some of the idiots in Tallahassee. The Government sucks at everything it does, why do we allow them to screw up insurance as well?
Using bonds to sell to investor’s is good, as well as developing a state water/wind pool with premium taxes, but the long term answer is to require all insurance companies licensed in FL to purchase intermediate layers of re-insurance — they all require — from a ‘state run fund’. FL can’t continue to pass off their Wind/Water related losses onto the insurance industry. They need to figure out how to become self-sufficient in solving their own unique problems. This has worked on other lines of coverage for other states, (MN) so no reason it couldn’t work in FL.
Glad to see that Citizens is preparing irrespective of the rate freeze and other predicaments imposed by legislature (versus taking the approach of just waiting for an event and working assessments). Purchase of private market reinsurance in addition to the CAT fund reinsurance is a step in the right direction for the company. Sounds like management is making things happen to lessen the impact of potential future assessments.
It is really disturbing that this story paints Citizens as financially solvent and able to handle anything other than a small event storm. Lets not forget that we still have assessments for the next 8 years to pay back POST-EVENT for claims in 2004-2005
This carrier has rates frozen for the next 18 months, pretty good policy forms compared to the take out companies, and the ability to push the losses on to the backs of everyone else when they have to pay a claim. I’m sorry but what are the elected officials thinking when they allow, no create this kind of mess. Remember this in November when we can clean house (& Senate) of some of the idiots in Tallahassee. The Government sucks at everything it does, why do we allow them to screw up insurance as well?
Using bonds to sell to investor’s is good, as well as developing a state water/wind pool with premium taxes, but the long term answer is to require all insurance companies licensed in FL to purchase intermediate layers of re-insurance — they all require — from a ‘state run fund’. FL can’t continue to pass off their Wind/Water related losses onto the insurance industry. They need to figure out how to become self-sufficient in solving their own unique problems. This has worked on other lines of coverage for other states, (MN) so no reason it couldn’t work in FL.
is it really? remember, that it still owes from the previous hurricane disasters. it still might be in the red!! not ahead, but behind.
Check out the Florida Reinsurance Corporation website for a concept that makes sense for Florida.