As our operation is focused primarily on providing risk solutions to healthcare providers, we are quite familiar with CNA’s posture with this volitile industry segement. While most carriers are continuing to increase rates and renewal premium requirements, although modestly in many situations, we are seeing numerous examples of CNA underwriting healthcare risks with a relative aggressive posture. Renewal reductions and/or matching the “competition” has occurred with some frequency. The predominant opinion among underwriters that we work with is that CNA appears to be both aggressive and inconsistant in their underwriting. Many of us in the industry are concerned with what would happen if CNA were to exit this segment and/or experience financial results that may impact their financial rating. In consideration of “CNA’s woes” third quarter results are concerning. The marketshare they have in with healthcare instituions in many areas of this country make their “woes” particularly concerning as respects this industry segment.
Note that there was no indication that long term care policies had anything to do with this third quarter loss. In fact, it would appear that CNA made lots of money in areas outside of hurricane insurance. Yet this company went to state after state, hat in hand, begging for a 50% increase in long term care premiums. California, and many other states, granted them a 25% increase on grounds that ltc was a relatively new field and the actuaries erred when setting premiums back in the 1990s. Butt CNA, in selling those policies to trusting seniors, boasted that it had 30 years experience in this field and consumers could rely on that experience. Will it take a class action suit to rectify this unjustified rate increase?
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As our operation is focused primarily on providing risk solutions to healthcare providers, we are quite familiar with CNA’s posture with this volitile industry segement. While most carriers are continuing to increase rates and renewal premium requirements, although modestly in many situations, we are seeing numerous examples of CNA underwriting healthcare risks with a relative aggressive posture. Renewal reductions and/or matching the “competition” has occurred with some frequency. The predominant opinion among underwriters that we work with is that CNA appears to be both aggressive and inconsistant in their underwriting. Many of us in the industry are concerned with what would happen if CNA were to exit this segment and/or experience financial results that may impact their financial rating. In consideration of “CNA’s woes” third quarter results are concerning. The marketshare they have in with healthcare instituions in many areas of this country make their “woes” particularly concerning as respects this industry segment.
CNA continues to put the wrong people in charge…..Centralization started by Ken Garcia…doomed this company to failure
Note that there was no indication that long term care policies had anything to do with this third quarter loss. In fact, it would appear that CNA made lots of money in areas outside of hurricane insurance. Yet this company went to state after state, hat in hand, begging for a 50% increase in long term care premiums. California, and many other states, granted them a 25% increase on grounds that ltc was a relatively new field and the actuaries erred when setting premiums back in the 1990s. Butt CNA, in selling those policies to trusting seniors, boasted that it had 30 years experience in this field and consumers could rely on that experience. Will it take a class action suit to rectify this unjustified rate increase?