At some point, the cost of providing coverage must be weighed against the propriety of providing coverage. Every situation is not insurable nor should this be the case.
That we have the capability, capacity and contruction equipment to build mansions and buildings on the shore does not imply that the public or private sector should insure the structures from natural disasters that strike the beach.
In 2004 the insurance industry sponsored legislation in MA to lift the premium caps in the MA Fair Plan’s large share territories-then set about non-renewing thousands and thousands of coastal homeowners who had no choice but the UnFair Plan for coverage, turning coastal areas into “large share” territories-no longer subject to rate caps thanks to the 2004 legislation.
The premiums for coastal homeowner insurance coverage have skyrocketed over the past three years.
The coastal homeowner crisis is is a very cleverly crafted crisis orchestrated by the insurance industry.
For the record-I didn’t decide to move to Cape Cod, I’m a 12th generation native Cape Codder. I’m a licensed insurance broker and a CPCU. – the insurance industry is guilty of collusion and price fixing based on hurricane modeling data they refuse to disclose for public scutiny. At least one of the hurricane modeling companies (A.I.R) is owned by the insurance industry (ISO). The other hurricane modeling company, RMS, is now officially run by a reinsurer insider-Robert Bently formerly of AON Re and Guy Carpenter Reinsurance Brokerage.
If you’re interested is NOT SEEING the hurricane modeling data, I have the UnFair Plan’s latest 3,200 page rate filing on a CD with critical hurricane modeling data “redacted”.
The insurance industry should be ashamed of itself and investigated by the authorities.
In addition to being born on the coast. I do not live in a waterfront mansion. I have an 864 square foot ranch set on a street between two hills – I am protected from the wind on two out of four sides of my house, am in no danger of flood (excluded on HO policy anyway). The huge wind deductibles take care of a large portion of wind exposure. The number of sesaonal homes on Cape Cod eliminates much of the Additional Cost of Living exposure. Carriers, including the MA Fair Plan are doing just fine financially and don’t have as much as exposure as they would like us all to believe.
And for the record, insurance has always had an element of socialism and without insurance captialism would not exist, but obscene captialism at the expense of individuals and the local economy just is not right – Jane Logan, CPCU Cape Cod, MA
While we can agree to disagree on specific details of pricing, reinsurance and arcane cat models, if Rita and Katrina has not taught everyone, those employed in the insurance industry and those not, that coastal exposure is problematic, how can a rational, not necessarily reasonably priced, solution be developed?
I know nobody likes facts, but here are a couple…
1. Florida’s population increased from 4.8 million in 1960 to 12.8 million in 1990
2. Florida’s coastal population increased by 169% (national average is 38%)
3. Large numbers of Florida residents are retired: they are older, generally wealthier (larger homes)
4. Florida’s Insured Coastal Residential Exposure as of 2004 was 942.5 billion
5. 7 of the 10 most expensive hurricanes in US history have occurred since 2004
6. 9 or of 10 of these have affected Florida
Even if Florida would stop all coastal development now, it is probably too late to positively impact their insurance climate. There is just too much exposure on the coast and based on the facts we have, they will have substantial hurricane losses, if not this year, then the next or maybe the year after that.
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At some point, the cost of providing coverage must be weighed against the propriety of providing coverage. Every situation is not insurable nor should this be the case.
That we have the capability, capacity and contruction equipment to build mansions and buildings on the shore does not imply that the public or private sector should insure the structures from natural disasters that strike the beach.
Some balance and judgment must be utilized.
In 2004 the insurance industry sponsored legislation in MA to lift the premium caps in the MA Fair Plan’s large share territories-then set about non-renewing thousands and thousands of coastal homeowners who had no choice but the UnFair Plan for coverage, turning coastal areas into “large share” territories-no longer subject to rate caps thanks to the 2004 legislation.
The premiums for coastal homeowner insurance coverage have skyrocketed over the past three years.
The coastal homeowner crisis is is a very cleverly crafted crisis orchestrated by the insurance industry.
For the record-I didn’t decide to move to Cape Cod, I’m a 12th generation native Cape Codder. I’m a licensed insurance broker and a CPCU. – the insurance industry is guilty of collusion and price fixing based on hurricane modeling data they refuse to disclose for public scutiny. At least one of the hurricane modeling companies (A.I.R) is owned by the insurance industry (ISO). The other hurricane modeling company, RMS, is now officially run by a reinsurer insider-Robert Bently formerly of AON Re and Guy Carpenter Reinsurance Brokerage.
If you’re interested is NOT SEEING the hurricane modeling data, I have the UnFair Plan’s latest 3,200 page rate filing on a CD with critical hurricane modeling data “redacted”.
The insurance industry should be ashamed of itself and investigated by the authorities.
– Jane Logan, CPCU
harborsidejl@hotmail.com
So…..perhaps my suspicion that Al Gore’s “we’re all gonna die” movie was funded by certain reinsurers is correct.
In addition to being born on the coast. I do not live in a waterfront mansion. I have an 864 square foot ranch set on a street between two hills – I am protected from the wind on two out of four sides of my house, am in no danger of flood (excluded on HO policy anyway). The huge wind deductibles take care of a large portion of wind exposure. The number of sesaonal homes on Cape Cod eliminates much of the Additional Cost of Living exposure. Carriers, including the MA Fair Plan are doing just fine financially and don’t have as much as exposure as they would like us all to believe.
And for the record, insurance has always had an element of socialism and without insurance captialism would not exist, but obscene captialism at the expense of individuals and the local economy just is not right – Jane Logan, CPCU Cape Cod, MA
Perhaps or some “private equity group” …
While we can agree to disagree on specific details of pricing, reinsurance and arcane cat models, if Rita and Katrina has not taught everyone, those employed in the insurance industry and those not, that coastal exposure is problematic, how can a rational, not necessarily reasonably priced, solution be developed?
Creating DOMESTIC competition for the reinsurance industry would be a nice start like State and Federal CAT Funds.
“the insurance industry is guilty of collusion and price fixing”
Suggest you forward that evidence to the SEC.
I know nobody likes facts, but here are a couple…
1. Florida’s population increased from 4.8 million in 1960 to 12.8 million in 1990
2. Florida’s coastal population increased by 169% (national average is 38%)
3. Large numbers of Florida residents are retired: they are older, generally wealthier (larger homes)
4. Florida’s Insured Coastal Residential Exposure as of 2004 was 942.5 billion
5. 7 of the 10 most expensive hurricanes in US history have occurred since 2004
6. 9 or of 10 of these have affected Florida
Even if Florida would stop all coastal development now, it is probably too late to positively impact their insurance climate. There is just too much exposure on the coast and based on the facts we have, they will have substantial hurricane losses, if not this year, then the next or maybe the year after that.
The coastal exposures of Cape Cod and Florida are completely different. I’m talking about Cape Cod, not Florida.