Let the market correct the inadequate rates. Let State Farm charge whatever they want as well as any other carrier. Those that want market share will charge less and those who believe that the rates should be higher will get less market share. It is called the free market economy or capitalism.
I can see limited potential for small/medium accounts getting some difference in treatment with a Q4 renewal under the theory that carriers would be eager to make there year end numbers.
This has to balance with a risk of them having used up their allocated capacity.
Is there any reason to believe this would hold true for the CPIC or equivalent?
I think the logic of shopping the reinsurance in fall for the January treaties is that the alternative of a July treaty is closer to hurricane season and therefore on the minds more of the reinsurers.
The state needs to reduce its exposure in both the cat fund and Citizens, but Governor Crist is against raising the rates of Citizens. The quickest way to reduce Citizens’ exposure and get it to an insurer of last resort is to increase the rates.
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.
Just let the government do everything for us, tell us what to pay, give us food to eat and then dictate what we will do for a living and where we should live.
Funny thing is that anyone under this type of governement usually fights to get away from it, why aren’t we fighting against it.
Who do we have to replace current corrupt politicians like Gov Crist? better find someone fast or we are circling the drain. Oh Yeah and what about the messiah in the White house? who got their stimulus check in the mail?
Let the damn companies charge whatever they want, consumers are not so stupid that we need the governor protecting us against prices. how do they think this country got to be what it is and how do we go back to what it was when we all cared.
…”consumers are not so stupid that we need the governor protecting us against prices”. Just how did you arrive at that? It is precisely because consumers, i.e., Florida homeowners, cried when their rates went up that the governor got involved to stop those big bad insurance companies from charging actuarial sound rates for the given exposure. This whole three ring circus stems from the fact that Florida is not the best place for high value urban development. Oh it’s nice for the sun and sea but hurricanes happen EVERY year. Consumers don’t understand that insurers business model is built on the calendar year, that they pay their losses for that particular year’s losses out of that year’s premiums. Consumers think that just because state farm has a surplus that they could expect to pay almost nothing by accessing the surplus to pay EACH and EVERY claim, all the while holding the line on premiums. I have little faith in consumers who, like taxpayers, want the government to solve their problems without having to pay for the solution. this whole thing in Florida can be solved in one week: let insurers charge actuarially sound rates. the only ones who would purchase reinsurance would be the insurers themselves, not the government.
Let the market correct the inadequate rates. Let State Farm charge whatever they want as well as any other carrier. Those that want market share will charge less and those who believe that the rates should be higher will get less market share. It is called the free market economy or capitalism.
I can see limited potential for small/medium accounts getting some difference in treatment with a Q4 renewal under the theory that carriers would be eager to make there year end numbers.
This has to balance with a risk of them having used up their allocated capacity.
Is there any reason to believe this would hold true for the CPIC or equivalent?
I think the logic of shopping the reinsurance in fall for the January treaties is that the alternative of a July treaty is closer to hurricane season and therefore on the minds more of the reinsurers.
The state needs to reduce its exposure in both the cat fund and Citizens, but Governor Crist is against raising the rates of Citizens. The quickest way to reduce Citizens’ exposure and get it to an insurer of last resort is to increase the rates.
The 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.
WAKE UP! THIS IS THE PLAN IN PLACE.
Just let the government do everything for us, tell us what to pay, give us food to eat and then dictate what we will do for a living and where we should live.
Funny thing is that anyone under this type of governement usually fights to get away from it, why aren’t we fighting against it.
Who do we have to replace current corrupt politicians like Gov Crist? better find someone fast or we are circling the drain. Oh Yeah and what about the messiah in the White house? who got their stimulus check in the mail?
Let the damn companies charge whatever they want, consumers are not so stupid that we need the governor protecting us against prices. how do they think this country got to be what it is and how do we go back to what it was when we all cared.
…”consumers are not so stupid that we need the governor protecting us against prices”. Just how did you arrive at that? It is precisely because consumers, i.e., Florida homeowners, cried when their rates went up that the governor got involved to stop those big bad insurance companies from charging actuarial sound rates for the given exposure. This whole three ring circus stems from the fact that Florida is not the best place for high value urban development. Oh it’s nice for the sun and sea but hurricanes happen EVERY year. Consumers don’t understand that insurers business model is built on the calendar year, that they pay their losses for that particular year’s losses out of that year’s premiums. Consumers think that just because state farm has a surplus that they could expect to pay almost nothing by accessing the surplus to pay EACH and EVERY claim, all the while holding the line on premiums. I have little faith in consumers who, like taxpayers, want the government to solve their problems without having to pay for the solution. this whole thing in Florida can be solved in one week: let insurers charge actuarially sound rates. the only ones who would purchase reinsurance would be the insurers themselves, not the government.