Still gotta solve the problem of new business going to Citizens. This would be a decent step in the right direction IF there were additional steps slowing down new business.
Fasano is against it which means this is probably a really good idea.
I’ve given my opinion on this numerous times. The captives need to have their Citizens appointments revoked. Also, get rid of the 15% rule. Make everyone sign a form that says they’ve exhausted all avenues to find private coverage.
Cool! Citizens is now expanding their business operations to banking as well. Let’s just hope their banking operations isn’t a nightmare to deal with as it is with their insurance underwriting!
With so many agents (captive and non) placing newer homes in Citizens, they should surcharge these risks to make it unattractive to place the business in Citizens. Finding a standard market for newer homes (new to 25 years old) is not a problem – we have many of them to choose from. The reason they are going to Citizens is their price!
There is a problem with that theory though. You see, that makes wayyyy too much sense and anything that makes sense goes completely and totally against governmental thinking.
What about the company that is left with a 17 year loan repayment without the benefit of premium when the new policy opts to go back to Citizens, or somewhere else after two-three years of rate increases? Is the loan forgiven or refinanced with the “relative risk” when the policy holder chooses to move?
What about if these companies dont have enough money to pay their claims in the event of a major storm and it falls back on the taxpayers again? How about just letting the ‘real’ insurance companies come to Florida an charge what they need to be profitable and pay claims. Such a novel idea.
If you look at the approved rates filed by the big insurers there’s no way they’re NOT sound. Even with these rates what big carriers are writing new policies?
“The loan program also eliminates $240 million in annual reinsurance costs.”
If accurate all we need is 2 years and the program MAKES money without a dime being repaid.
The flaw in this thinking is that it eliminates $240 mil in reinsurance, but they also lose out on the corresponding premiums.
By Citizens’ own admission their rates aren’t sufficient for the risk.
Still gotta solve the problem of new business going to Citizens. This would be a decent step in the right direction IF there were additional steps slowing down new business.
Fasano is against it which means this is probably a really good idea.
I’ve given my opinion on this numerous times. The captives need to have their Citizens appointments revoked. Also, get rid of the 15% rule. Make everyone sign a form that says they’ve exhausted all avenues to find private coverage.
HA! Hillsborough, you are so right about Fasano.
Cool! Citizens is now expanding their business operations to banking as well. Let’s just hope their banking operations isn’t a nightmare to deal with as it is with their insurance underwriting!
With so many agents (captive and non) placing newer homes in Citizens, they should surcharge these risks to make it unattractive to place the business in Citizens. Finding a standard market for newer homes (new to 25 years old) is not a problem – we have many of them to choose from. The reason they are going to Citizens is their price!
There is a problem with that theory though. You see, that makes wayyyy too much sense and anything that makes sense goes completely and totally against governmental thinking.
Cool, not only an insurance risk, but now a credit risk to go with the insurance risk. Is this what is meant by enterprise risk management?
A fool and their money are soon ?
What about the company that is left with a 17 year loan repayment without the benefit of premium when the new policy opts to go back to Citizens, or somewhere else after two-three years of rate increases? Is the loan forgiven or refinanced with the “relative risk” when the policy holder chooses to move?
What about if these companies dont have enough money to pay their claims in the event of a major storm and it falls back on the taxpayers again? How about just letting the ‘real’ insurance companies come to Florida an charge what they need to be profitable and pay claims. Such a novel idea.
If you look at the approved rates filed by the big insurers there’s no way they’re NOT sound. Even with these rates what big carriers are writing new policies?