I am sounding like a broken record here, but you have to cut coverage and offer buy backs. This would negate the need for huge rate increases as a large percentage of customers would buy the coverage back and there would be fewer claims on those who didn’t. When people realize they’re getting a lot less coverage for the same money it will prompt many to shop and get into the private market without depopulation initiatives.
For those who truly have no other choice (which is not a large population by the way), they can decide how much coverage they want to buy.
Mr.Solvent, that is a good idea. I dont know whay people always seem to be against the plan with the most common sense. I never sell on price and my customers almost always are willing to pay for more coverage.
I’m sorry Mr. Solvent, but de-population is not in his control. The only way to de-populate is to give the standard market a reason to take that risk from them. Given the regulatory barriers to rate adequacy in Florida (and many other state operated disaster funds or wind pools for that matter) they have no incentive to do so and cannot overcome the state monopoly created by the wholly unsound pricing mandates in these pools. The solution can only be realized by a fundamental change in the way government tries to reallocate insurance costs.
Ins Guy, that sounds like the talking points that the media feeds.
The truth of the matter is the private market still makes up 75% of the property market in Florida. There are several reasons Citizens is as large as it is. The main reason is Citizens often has lower rates and similar coverage to what’s available in the private market. Combine that with certain captives who only have Citizens to sell and frankly misrepresent the policy and you have the disaster that is Citizens.
Let the private market that we have work and try to bring stable carriers back into the market.
Oh by the way…25% of the market! That gigantic! Especially given that they write the riskiest. The bulk of that is coastal.
I would be my next paycheck that the next closest competitor isn’t 15% or even 10%. How many of the top 50 are even over 2%? I’d also bet its 10 or less.
Thanks for pointing that out. Its worse than I thought it was.
how many folks in that state one, make lots of money and can afford the other insurance? is there a limit on the value or highest point that the floridian state policy will cover? sounds like there is a way, w/o having to really upgrading the rate increase quickly, although it should have been priced out correctly… just like it would be for any other agency having homeowner insurance… you make them justify why they need increases… if you did not do that for this, then fooey on the state!
The Citizen’s policy has a 1 million property limit on an HO3 Coverae A, also only 100K for liability, no coverage for carports, screened enclosures and the like. Only 25% of Cov A for personal property. The thing is too many captive agents have placed property that will qualify for many other carriers in Citizen’s because that is the only carrier they have. The captive agent needs to do right by the client and get them out of Citizens or leave the captive contract. Every insured in Florida will be assessed if Citizen’s can’t pay a CAT claim. I will help get the captive agent policies into the general market too. And I will do it for free because it is the right thing to do….
Here’s a great way to depopulate: Let me go into every State Farm office in the state and rewrite all the policies I can to the private market. I can probably get rid of a couple hundred thousand right there.
I am sounding like a broken record here, but you have to cut coverage and offer buy backs. This would negate the need for huge rate increases as a large percentage of customers would buy the coverage back and there would be fewer claims on those who didn’t. When people realize they’re getting a lot less coverage for the same money it will prompt many to shop and get into the private market without depopulation initiatives.
For those who truly have no other choice (which is not a large population by the way), they can decide how much coverage they want to buy.
Mr.Solvent, that is a good idea. I dont know whay people always seem to be against the plan with the most common sense. I never sell on price and my customers almost always are willing to pay for more coverage.
I’m sorry Mr. Solvent, but de-population is not in his control. The only way to de-populate is to give the standard market a reason to take that risk from them. Given the regulatory barriers to rate adequacy in Florida (and many other state operated disaster funds or wind pools for that matter) they have no incentive to do so and cannot overcome the state monopoly created by the wholly unsound pricing mandates in these pools. The solution can only be realized by a fundamental change in the way government tries to reallocate insurance costs.
Ins Guy, that sounds like the talking points that the media feeds.
The truth of the matter is the private market still makes up 75% of the property market in Florida. There are several reasons Citizens is as large as it is. The main reason is Citizens often has lower rates and similar coverage to what’s available in the private market. Combine that with certain captives who only have Citizens to sell and frankly misrepresent the policy and you have the disaster that is Citizens.
Let the private market that we have work and try to bring stable carriers back into the market.
Oh. OK. 75% of property is in the private market. Well, I guess everything is OK then. Now worries at all. Much ado about nothing. My mistake.
Oh by the way…25% of the market! That gigantic! Especially given that they write the riskiest. The bulk of that is coastal.
I would be my next paycheck that the next closest competitor isn’t 15% or even 10%. How many of the top 50 are even over 2%? I’d also bet its 10 or less.
Thanks for pointing that out. Its worse than I thought it was.
how many folks in that state one, make lots of money and can afford the other insurance? is there a limit on the value or highest point that the floridian state policy will cover? sounds like there is a way, w/o having to really upgrading the rate increase quickly, although it should have been priced out correctly… just like it would be for any other agency having homeowner insurance… you make them justify why they need increases… if you did not do that for this, then fooey on the state!
The Citizen’s policy has a 1 million property limit on an HO3 Coverae A, also only 100K for liability, no coverage for carports, screened enclosures and the like. Only 25% of Cov A for personal property. The thing is too many captive agents have placed property that will qualify for many other carriers in Citizen’s because that is the only carrier they have. The captive agent needs to do right by the client and get them out of Citizens or leave the captive contract. Every insured in Florida will be assessed if Citizen’s can’t pay a CAT claim. I will help get the captive agent policies into the general market too. And I will do it for free because it is the right thing to do….
Here’s a great way to depopulate: Let me go into every State Farm office in the state and rewrite all the policies I can to the private market. I can probably get rid of a couple hundred thousand right there.
I’ll help. There would be plenty for the both of us.