The insurance underwriting companies in FL all have an MGA, this MGA is where they are making all of their money. They also have their employees work for the MGA and not the insurance underwriting company, therefore they can charge back to the underwrting company all their expenses. This in turn drives up their combined ratios and causes their rates to increase higher than just their losses dictate. Insurance companies are making a lot of money, and now since we have loss activity they are just passing that along to the consumer, their not losing any money in the deal. The system is broken and needs to be fixed. It worked 25 years ago, but it does not work today
The insurance underwriting companies in FL all have an MGA, this MGA is where they are making all of their money. They also have their employees work for the MGA and not the insurance underwriting company, therefore they can charge back to the underwrting company all their expenses. This in turn drives up their combined ratios and causes their rates to increase higher than just their losses dictate. Insurance companies are making a lot of money, and now since we have loss activity they are just passing that along to the consumer, their not losing any money in the deal. The system is broken and needs to be fixed. It worked 25 years ago, but it does not work today