Florida Gov. Crist OK With Rate Increases by Citizens

March 11, 2009

  • March 11, 2009 at 8:58 am
    Mr. Solvent says:
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    I’m glad politicians get to decide the financial future of an insurance company that was only designed to be the insurer or last resort. Rates are about 50% shy.

  • March 11, 2009 at 8:58 am
    Steve says:
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    When the Governor basically states that rates shouldn’t be cost-based, and the head of the OIR is functioning as his genie, can deteriorating COR’s and catastrophe assessments be far away?

  • March 11, 2009 at 9:40 am
    SWFL Agent says:
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    Good points. Still don’t understand how “takeout” companies, offering the promise of lower rates than Citizens, and offering more agent commissions can claim they are making money on the exact same risks. Is Citizens that inefficient that there is substantially more cost built into their system or does the risk magically become different once it’s transferred on from Citizens to another carrier.

    For all of the the National carriers that have left or stopped writing, it’s as much the political issues in Florida as it is the rate/exposure issues. They don’t want to come back at any rate level. They never know what the OIR will subject them to.

  • March 11, 2009 at 9:55 am
    Rick says:
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    You people in Florida should figure out a catchy name for Citizens in order to attach Charlie Crist to it. He’ll have some higher office or job in Washington because he used you people to get there. Continue to call it by that catchy name and when it goes belly up he will be synonymous with failure.

  • March 11, 2009 at 10:55 am
    Mr. Solvent says:
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    These takeout companies get to pick the attributes they are looking for when they takeout policies. Often times they pull the policies with no windstorm mitigation credits. I believe this is why they are profitable in some cases while Citizens is not.

  • March 11, 2009 at 12:29 pm
    JMA says:
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    The rate freeze certainly provided a lot of politcal capital but it was and is irresponsible.!
    FL had a chance in mild weather seasons to build some reserves for Citizens. The way companies are fleeing this State, the more fiscally prudent Citizens should be. We are about one Cat 3 Hurricane away from any wind insurance being available.
    An extra surcharge of 10 to 20% to be set aside as reserves would have been the responsible step to take.
    The notion that Citizens can always sell bonds also begs the question of who would buy them!!

  • March 11, 2009 at 12:32 pm
    FL Agent says:
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    How about “The Peoples Republic of Insurance”? I also like “Charlie’s Folly.” I’ll leave out some of the more colorful double entendres I’ve heard that use the word “blow”. The possibilities, frankly, are endless.

  • March 11, 2009 at 12:35 pm
    fl agent says:
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    Steve – have you looked at a Florida policy lately – we are still charging a CAT fund assessment on ALL surplus lines non admitted policies and starting last December a new 1.4% Citizens assessment on all property driven surplus lines policies – by the time we add up tax and fees on these surplus lines policies we’re looking at almost an additional 7-8% added to base premium – I think someone needs to clean house at Citizens and get the dead weight out of there –

  • March 11, 2009 at 12:44 pm
    Stan Chatory says:
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    It’s only a matter of time before Charlie is given a position by The Messiah, because he has certainly proven he is just as incompetent as everyone else appointed to the cabinet. Hope & Change! I see the change but I know nobody with a functioning brain who has hope. When that next hurricane wipes out Florida it should be an interesting blame session.

  • March 11, 2009 at 1:00 am
    Dude says:
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    The name could be Critizens Insurance.

  • March 11, 2009 at 1:14 am
    JR says:
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    Hey Charlie, you big A55, Florida residents are finally looking past your campaign promises and finally seeing that you have done NOTHING good for the people of Florida. You have ran off dozens of insurance companies, you were instrumental in the pure insolvency of Citizens by making it be competitive in the market and placing the exposure squarely on consumers. You have allowed the FHCF (cat fund) to be over burdened with potential losses that you and all your cronies can not pay for.

    I would bet there are thousands of agents willing to be Charlies campaign manager for national office, just to get him out of Florida.

    Hey Charlie, hows the tax thing going? we are going to get a big reduction in Florida right???

  • March 11, 2009 at 1:28 am
    mlm says:
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    Freddie, Fannie and Charlie. Citizen sponsored entities developed with a Political Mission.

    Did anyone know that there are about 7 preferred Sinkhole fixing vendors covering about 2000 claims and access to
    outside entities wanting to bid on the work is ‘discouraged’ by claims mgrs?
    And, Citizens guarantees their work and coverage placement. Heck, Even DOT will let folks bid if they qualify. As a government owned, taxpayer backed entity -Artificial Pricing and This type thing stinks. Competitive bid????

  • March 11, 2009 at 1:35 am
    Bill says:
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    Since when did the Governor’s job include setting insurance rates. I am glad to know that Charlie is now an actuary.

  • March 11, 2009 at 1:46 am
    Sam says:
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    Charlie is getting 13 billion from his pal Obama. How about using some of this found money to prop up Citizens. Thought so, Not his money, just the citizens of Florida.

    State farm is not charging as much as Citizens why cant they get a rate increase? Oh Government involvement, theres the problem.

  • March 11, 2009 at 1:53 am
    Bill says:
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    Florida start up carriers are a PONZI!

    1. Start a company with borrowed 5 million.
    2. Create a MGA to administer (Ha) the company.
    3 Charge 65% of the premiums for doing so.
    4. Put together some bulls*it reinsurance
    5. Give the keys to FIGA when the wind blows.
    6. Let all the citizens and good carriers,if any are left to pay for your loses through FIGA assessments.
    7. Pay off the 5 million loan and pocket the rest through your MGA while the carrier goes up in flames.

    WAKE UP! THIS IS THE BUSINESS PLAN OF ALL OF THE START UP CARRIERS IN FLORIDA.

  • March 11, 2009 at 2:04 am
    Gill Fin says:
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    can SF Florida pay back the $750 million stolen from the rest of us SF insureds in other states? Please? Soon we too will be rate inadequate. After seeing how that type of problem gets mishandled at the state level, and good insurers get run off by the governer, I don’t want my state to become insolvent like Florida.
    No fool like an old fool.

  • March 12, 2009 at 1:06 am
    plymn says:
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    Any bets that the increase is less than the increase in cost to repair property per the following article?

    Cost Of Rebuilding Damaged Homes Rising, Study Finds
    BY DANIEL HAYS
    NU Online News Service, March 11, 1:23 p.m. EDT

    The cost to rebuild a damaged home went up approximately 3.95 percent nationwide last year even as real estate prices were declining, according to a study by a technology firm.

    Orem, Utah-based Xactware said in Phoenix, the hardest hit metropolitan region, where average home values fell 32.9 percent in 2008, the rebuilding cost went up 5.38 percent.

    Its findings, said Xactware, point to the need to keep updating insurance coverage based on construction costs.

    The firm said changes in cost, according to its reconstruction cost index, showed the top five states were led by Alaska, where they soared above 8 percent, followed by Nevada, at over 6 percent. Hawaii, Texas and Georgia were all above 5 percent.

    In its regional year-end median cost to rebuild on a per square foot basis, Xactware said for premium homes the cost was nearly $600 in Hawaii, with Northern California, Alaska, Southern California and Florida all at or slightly above $500.

    The firm said the construction industry is still coping with the effects of high gas prices “months after they have dropped.”

    The cost of 25-year composition shingles, it reported, jumped 71.4 percent, and lumber went up 2.8 percent, with drywall rising 5.77 percent.

    Despite a lack of high-profile disasters in 2008, Xactware said the number of insurance claims was higher in 2008 and the total dollar amount reported to Xactware was just over $23.8 billion compared to $13.9 billion in 2007.

    According to the company, despite higher costs the pace of increases has slowed and its material and labor index increased 3.16 percent in 2008 compared with 5.87 in 2007.

    The study found that average “retail” labor rates for insurance repair work increased 5.43 percent in 2008 compared with 7.68 percent in 2007.

    Overall, Xactware said, labor costs have continued to rise over the past several years despite the downward trend in the economy.

    More information is available at http://www.xactware.com.



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