Mass. Panel Says State Should Create A Catastophe Fund

December 19, 2007

  • December 19, 2007 at 2:11 am
    Mass Cynic says:
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    if the State were to appoint itself guardian of the fund. They do such an exemplary job on other public projects that it’s hard to believe something like this would accrue to the benefit of anyone but their own pockets.

  • December 19, 2007 at 2:19 am
    InsuranceIsFun says:
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    In general, I support govt backed catastrophe funds, but not if it’s solely for coastal properties. The comment regarding industry opposition due to premium increases throughout the state leads me to believe the CAT fund would come from assessments to all Home policies. That is not fair to non-coastal consumers who won’t receive any benefits. Actuaries don’t use a bias when determing waterfront rates, they base it on statistical data. If you can’t afford coastal insurance, then don’t build your house on sand dunes! I don’t appreciate the “haves” asking for a handout from the “have nots”.

  • December 19, 2007 at 3:49 am
    Just Dazed says:
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    The comment about the rates going up – – confused me – – you’re probably right that they’re referring to assessments, but I am guessing, based on what’s going on here in Sunny Florida, that with or without assessments the rates are going to go up.

    Let the state form a tax emempt, nonprofit, assume all wind risk, let the insurers compete for all other perils, and roll the dice – – it is better than sending the reinsurance off-shore and into outer space – – the reward over time with all the wind premium dollars they’d be able to acquire (assuming it’s not pissed away on bad investments or stupid project) would be phenomenal.

  • December 20, 2007 at 8:25 am
    MrObvious says:
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    Funded by the non-coastal homeowners in MA of course, who choose not to take the risk of hurricane, but then are asked to fund the risk for those that do.

    If Florida would allow the actual risk premiums to be charged along the coast, maybe they’d stop developing in places where you are going to have to rebuild at least once a decade.



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