The insurance market and reinsurance market are largely the same. Insurers and reinsurers look to build a pool of diverse, adequately priced risks that collectively will pay all losses, lost costs, expenses and leave some over for profit.
Where do you start? Expected loss costs. Florida’s litigation economy continues to drive expected loss costs up.
Don’t look to blame insurers or reinsurers – if reinsurers were making outsized profits in Florida, there would be an abundance of competition that would limit or eliminate outsized profits.
Who is making outsized profits? – the trial lawyers. The system is out of balance and needs reform.
50% increase in Florida on average for the current year and some carriers unable to acquire it at any price.
If our luck holds out and Florida gets through the year without a major storm, maybe only 30% next year as an average increase.
The insurance market and reinsurance market are largely the same. Insurers and reinsurers look to build a pool of diverse, adequately priced risks that collectively will pay all losses, lost costs, expenses and leave some over for profit.
Where do you start? Expected loss costs. Florida’s litigation economy continues to drive expected loss costs up.
Don’t look to blame insurers or reinsurers – if reinsurers were making outsized profits in Florida, there would be an abundance of competition that would limit or eliminate outsized profits.
Who is making outsized profits? – the trial lawyers. The system is out of balance and needs reform.
“Reinsurers met in Monte Carlo…..”. Probably not the best look for discussing substantive price increases.