What goes thru their minds is that Charlie got elected to 7 or 8 different positions over the years by grandstanding and promising things that blow up after the fact. They know the insurance market is in peril and we were forced to do everything they proposed which is why we are here today with our fingers crossed. Good ole Charlie has NEVER run for re-election of any office he has held, he screws it up so bad that he has to move on because it can not be fixed quickly. Now he wants to be our US Senator in D.C. and I ask everyone that will listen,” just what has Charlie Crist done that has benefitted Floridians and are we better off today than 4 years ago when everyone thought he was so great”? He can’t blame FL. house or senate, he drove that train the way he wanted and anything they passed that he did not like (SB-2044) he vetoed. I only hope enough people figure it out in time. I hope the next thing that goes thru their mind is “I guess they figured us out, what do you want to do for a job now”?
From an Agent perspective, I would love a pay increase but I’m sure the carriers and the State will reduce our percentage accordingly.
I have watched examples of rates go from 800 to 1600 on a normal home. Now we move it to 2600 if Actuaries had their way and reduce coverage availability. On top of that we go from ‘no’ policy fee to 100 plus (for the mga) on many of these.
With foreclosure at all time high and recessionary cycle pushing the limits of
buying power – someone needs to find out what coverage format we can put out there that people can afford or improve capacity on Vacant homes.
HO-3 with a water limit and sinkhole exclusion would be a fine form for keeping bogus claims to a minimum. It still won’t keep public parasites from reopening hurricane claims 5 years later.
If the max increase allowed is 10% and the rate actually needed is over 50% why are we seeing less than the 10% allowed? and it is on EVERY line of business. Condos need 20% but are only seeing 2%. This is unsound and the board should be held responsible for the next assessment since they could raise the rates 10% but didn’t. I understand the consumers are having a hard time but the consequences of a Citizens failure will seem like a punch in the gut compared to paying a little more now. We must get Citizens rates up if we are every going to allow the real insurance companies to become a viable market again. Citizens administrative expenses are alledgedly lower, well if other companies did not have to spend 53% of every dollar on reinsurance they would be better off also. Citizens does not place reinsurance coverage like other companies so of course their expenses are lower. I would argue all day if they as efficient as any other company out there. Just raise the rates so other companies can play ball too.
Since state law caps rate increases on existing business why not adopt actuarially correct rates for all new business written henceforth? Proper (actuarial) rates would at least limit the growing liabilities of Citizens to Florida tax payers going forward while eventually balancing Citizens rate deficiencies over time.
Here’s what kills me…all the assessments tacked onto policies sold by the standard insurance companies. So people who go with Citizens dont have to pay as much because I’m helping them out on my State Farm policy which is getting its own hefty increase.
Citizens would be declared insolvent if it were a private company and would be put out of business, like some of the “State Sponsored” companies already have.
Abolish the rule that states you can write a Citizens policy if a standard carrier is more than 15% more than Citizens. Whoever created that rule should be terminated immediately as our standard homeowners are cancelling in droves to always go with a “cheaper”rate.
I feel sorry for your situation Hulu. I live in one of the more Liberal areas of Florida and the vast majority of folks still don’t want government insurance. You should probably work hard to point out to people that Citizens is government insurance.
Lots of folks in this area are getting hit hard by State Farm premium increases. Had a guy this a.m. that went from $2900 to $4500. Luckily I was able to quote him with Tower Hill but he would have jumped to Citizens in a heartbeat if it would save him $1000 per year.
Happening a lot lately. Much of the State Farm book goes straight to Citizens with the customer never seeing any other options.
You make a very valid point about that State Farm business. That’s why I’ve always said that what those agents are forced to do isn’t right. I would think that State Farm would want to pull an Allstate and hand pick 3 or 4 companies to allow their agents to openly write with…not just for the non-renewals.
Couldn’t help but laugh at the article. When the pandering idiot Charlie Christ became governor the first thing he did was to have Citizens lower their rates. Smart move Charlie! Undercutting rates lower than the Florida standard insurer marketplace. Heck some insurers had to resubmit their rate increase justifications using a 100 year loss plan, two months after those filings Charlie had Citizens use a 50 year plan to justify rates. How smart was that? 4 years later the chickens have come home to roost and Charlie is moving on politically. Great timing! We better pray that Florida does not get hit with a hurricane for the next five years or the taxpayers of Florida are going to get soaked! Between Crist and Obama the Florida taxpayer will have nothing left to run their household!!!
Thank you Charlie!
These two items are fundamentally at odds, Insurance is actuarily based on the law of large numbers. Politics is based on the law of obtaining votes in large numbers. Insurance is based on what is best financially for consumers in the long run. Policy is based on what voters want to hear in the short term.
Someone needs to tell politicians and our President that Insurance should be left outside of politics and kept private and insurance commissioners be experienced in the industry appointed by a public service commission and be very well scrutinized for industry financial involvement.
Who do the citizens of Florida think is going to pay for inadequate rates long term? Do you think the surcharge will be fairly distributed amongst the residents of the State? Pay me now or pay me latter.
Remember the game time bomb?
It was a Black Platic Toy Bomb — you would wind the red fuse and it would tick away no one knew when it would go off — you would pass it around and when it went off you lost —-
Hurry Charlie Hurry Get out and toss it to someone else…..
What goes thru their minds is that Charlie got elected to 7 or 8 different positions over the years by grandstanding and promising things that blow up after the fact. They know the insurance market is in peril and we were forced to do everything they proposed which is why we are here today with our fingers crossed. Good ole Charlie has NEVER run for re-election of any office he has held, he screws it up so bad that he has to move on because it can not be fixed quickly. Now he wants to be our US Senator in D.C. and I ask everyone that will listen,” just what has Charlie Crist done that has benefitted Floridians and are we better off today than 4 years ago when everyone thought he was so great”? He can’t blame FL. house or senate, he drove that train the way he wanted and anything they passed that he did not like (SB-2044) he vetoed. I only hope enough people figure it out in time. I hope the next thing that goes thru their mind is “I guess they figured us out, what do you want to do for a job now”?
If Citizens were private they’d be driven out of the state for charging rates that are woefully inadequate.
Virtually all of the “State Sponsored” companies are actuarily unsound political footballs.
This mess presented by Charlie Crist for U.S. Senate 2010.
From an Agent perspective, I would love a pay increase but I’m sure the carriers and the State will reduce our percentage accordingly.
I have watched examples of rates go from 800 to 1600 on a normal home. Now we move it to 2600 if Actuaries had their way and reduce coverage availability. On top of that we go from ‘no’ policy fee to 100 plus (for the mga) on many of these.
With foreclosure at all time high and recessionary cycle pushing the limits of
buying power – someone needs to find out what coverage format we can put out there that people can afford or improve capacity on Vacant homes.
HO-3 with a water limit and sinkhole exclusion would be a fine form for keeping bogus claims to a minimum. It still won’t keep public parasites from reopening hurricane claims 5 years later.
If the max increase allowed is 10% and the rate actually needed is over 50% why are we seeing less than the 10% allowed? and it is on EVERY line of business. Condos need 20% but are only seeing 2%. This is unsound and the board should be held responsible for the next assessment since they could raise the rates 10% but didn’t. I understand the consumers are having a hard time but the consequences of a Citizens failure will seem like a punch in the gut compared to paying a little more now. We must get Citizens rates up if we are every going to allow the real insurance companies to become a viable market again. Citizens administrative expenses are alledgedly lower, well if other companies did not have to spend 53% of every dollar on reinsurance they would be better off also. Citizens does not place reinsurance coverage like other companies so of course their expenses are lower. I would argue all day if they as efficient as any other company out there. Just raise the rates so other companies can play ball too.
Since state law caps rate increases on existing business why not adopt actuarially correct rates for all new business written henceforth? Proper (actuarial) rates would at least limit the growing liabilities of Citizens to Florida tax payers going forward while eventually balancing Citizens rate deficiencies over time.
Here’s what kills me…all the assessments tacked onto policies sold by the standard insurance companies. So people who go with Citizens dont have to pay as much because I’m helping them out on my State Farm policy which is getting its own hefty increase.
Jerry, that idea is pure genius.
“Posted By: Mr. Solvent
Comment:
Jerry, that idea is pure genius.”
Mr. Solvent, you forgot to add: “…and therefore will never happen.”
Do you think that they read these publications?
If they do, I wonder what goes through their minds….
Citizens would be declared insolvent if it were a private company and would be put out of business, like some of the “State Sponsored” companies already have.
Abolish the rule that states you can write a Citizens policy if a standard carrier is more than 15% more than Citizens. Whoever created that rule should be terminated immediately as our standard homeowners are cancelling in droves to always go with a “cheaper”rate.
I feel sorry for your situation Hulu. I live in one of the more Liberal areas of Florida and the vast majority of folks still don’t want government insurance. You should probably work hard to point out to people that Citizens is government insurance.
Lots of folks in this area are getting hit hard by State Farm premium increases. Had a guy this a.m. that went from $2900 to $4500. Luckily I was able to quote him with Tower Hill but he would have jumped to Citizens in a heartbeat if it would save him $1000 per year.
Happening a lot lately. Much of the State Farm book goes straight to Citizens with the customer never seeing any other options.
You make a very valid point about that State Farm business. That’s why I’ve always said that what those agents are forced to do isn’t right. I would think that State Farm would want to pull an Allstate and hand pick 3 or 4 companies to allow their agents to openly write with…not just for the non-renewals.
Couldn’t help but laugh at the article. When the pandering idiot Charlie Christ became governor the first thing he did was to have Citizens lower their rates. Smart move Charlie! Undercutting rates lower than the Florida standard insurer marketplace. Heck some insurers had to resubmit their rate increase justifications using a 100 year loss plan, two months after those filings Charlie had Citizens use a 50 year plan to justify rates. How smart was that? 4 years later the chickens have come home to roost and Charlie is moving on politically. Great timing! We better pray that Florida does not get hit with a hurricane for the next five years or the taxpayers of Florida are going to get soaked! Between Crist and Obama the Florida taxpayer will have nothing left to run their household!!!
Thank you Charlie!
These two items are fundamentally at odds, Insurance is actuarily based on the law of large numbers. Politics is based on the law of obtaining votes in large numbers. Insurance is based on what is best financially for consumers in the long run. Policy is based on what voters want to hear in the short term.
Someone needs to tell politicians and our President that Insurance should be left outside of politics and kept private and insurance commissioners be experienced in the industry appointed by a public service commission and be very well scrutinized for industry financial involvement.
KEEP GOVERNMENT OUT OF INSURANCE!
Who do the citizens of Florida think is going to pay for inadequate rates long term? Do you think the surcharge will be fairly distributed amongst the residents of the State? Pay me now or pay me latter.
Remember the game time bomb?
It was a Black Platic Toy Bomb — you would wind the red fuse and it would tick away no one knew when it would go off — you would pass it around and when it went off you lost —-
Hurry Charlie Hurry Get out and toss it to someone else…..
The Belinda Miller who posted a comment earlier is not the Belinda Miller who is the Deputy Commissioner.