I don’t see the problem with requesting “a statewide average rate increase of 25.3 percent, varying by territory, with a requested effective date of Aug. 1, 2014.”
Since “New homeowners insurance rates went into effect in July 2013.”
Mr. Commissioner, this is what happens when you artificially suppress rates. Property insurers have been struggling for many years. Claim costs and litigation costs are up. When rates do not rise modestly along the way, large increases are necessary later. Try paying the minimum payment on your credit card and see what happens to your balance and eventual payment due. Or avoid saving money for retirement along the way. It cannot be made up easily late in life. The principal – beyond the obvious profit and loss analysis – is obvious.
I don’t see the problem with requesting “a statewide average rate increase of 25.3 percent, varying by territory, with a requested effective date of Aug. 1, 2014.”
Since “New homeowners insurance rates went into effect in July 2013.”
Mr. Commissioner, this is what happens when you artificially suppress rates. Property insurers have been struggling for many years. Claim costs and litigation costs are up. When rates do not rise modestly along the way, large increases are necessary later. Try paying the minimum payment on your credit card and see what happens to your balance and eventual payment due. Or avoid saving money for retirement along the way. It cannot be made up easily late in life. The principal – beyond the obvious profit and loss analysis – is obvious.
Be sure to check your fact before making these kinds of statements. Don’t worry, call Murray