As the assigned risk type plans increase in population, fewer insurance companies will market in the state.
Assigned risk plans allow an opportunity for loss but no opportunity for profit. This does not add to a healthy insurance climate to help with other market problems.
The MA Fair Plan articles of organization allow for “profits, if any”. Nothing in the documents prohibit the MA Fair Plan from making a profit and they made 32 million and 48 million in the past two years. Non-renewing in the voluntary market and writing the same insured through the Fair Plan saves the carriers about 50% of commision expense and that’s not counting contingency commission! Not to mention the change in coverage going from broad coverage provided in voluntary market to limited coverage through Fairn Plan and limited Additional Living Expense exposure due to large number of seasonal second homes here. Finally, it is much more difficult to get financial information on the MA Fair Plan than most carriers. So to sum it all up, the carriers are making more money with less exposure and less financial disclosure!
Some believe the government exists to protect the stupid (also known as the public) and therefore believe that it is government that must step forward to aid the stupid (the public) from rapidly growing insurance premiums. Its not a question of communism/socialism versus capitalism. Honestly I don’t know why some otherwise intelligent people are wasting their time with this economic existentialism when they could be spending their time discussing the problem. Assuming frustration is gaining the upper hand, I recommend doubling efforts to focus. People can’t afford the sharply rising rates will either have to vacate their homes and move inland (or leave the state entirely) or they will flee private enterprise and seek the nurturing bosom of a government bureacracy that basically doesn’t have a clue. There is no easy solution unfortunately. But the status quo is doomed to failure. One policy is rate setting free of government intervention. If the government decides to let that power go, the insurance industry better hope that they are able to find a solution that the public finds acceptable. If not, the public will pressure politicians who don’t know what to do to take rash decisions which will come to bite the industry on its rear. And could even lead to a distruction in public trust in insurance altogether.
What’s stupid is the regultors not controlling this industry. What’s stupid is moving away from your home without even TRYING to do something about the issue. C’mon Kenney, you can’t write and you can’t debate the facts so you just sling insults. NICE. Study the issue for 3.5 years as I have and write when you have something intelligent to add the discussion. If I were to decide to leave (yielding to corporate greed) without a fight I’d have to move so far I’d end up in Tornado Alley. At least hurricane don’t arrive without any warnimg.
Come back to the discussion when you grow up and get your CPCU.
I think most of us reading the comments on this string would agree that the only “stupid” and certainly unprofessional comments that I have read are the ones from Jane and RAL. Jane, your CPCU studies were wasted. It proves that passing a course of study isn’t proof of common sense. Jane, I know you will find some childish and insulting thing to say back. Don’t waste your time. When I see your name and RAL from now on, I will skip the comments. GROW UP!
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Jane,
Sorry but my comment was not directed towards you or Cape Cod.
As the assigned risk type plans increase in population, fewer insurance companies will market in the state.
Assigned risk plans allow an opportunity for loss but no opportunity for profit. This does not add to a healthy insurance climate to help with other market problems.
The MA Fair Plan articles of organization allow for “profits, if any”. Nothing in the documents prohibit the MA Fair Plan from making a profit and they made 32 million and 48 million in the past two years. Non-renewing in the voluntary market and writing the same insured through the Fair Plan saves the carriers about 50% of commision expense and that’s not counting contingency commission! Not to mention the change in coverage going from broad coverage provided in voluntary market to limited coverage through Fairn Plan and limited Additional Living Expense exposure due to large number of seasonal second homes here. Finally, it is much more difficult to get financial information on the MA Fair Plan than most carriers. So to sum it all up, the carriers are making more money with less exposure and less financial disclosure!
Some believe the government exists to protect the stupid (also known as the public) and therefore believe that it is government that must step forward to aid the stupid (the public) from rapidly growing insurance premiums. Its not a question of communism/socialism versus capitalism. Honestly I don’t know why some otherwise intelligent people are wasting their time with this economic existentialism when they could be spending their time discussing the problem. Assuming frustration is gaining the upper hand, I recommend doubling efforts to focus. People can’t afford the sharply rising rates will either have to vacate their homes and move inland (or leave the state entirely) or they will flee private enterprise and seek the nurturing bosom of a government bureacracy that basically doesn’t have a clue. There is no easy solution unfortunately. But the status quo is doomed to failure. One policy is rate setting free of government intervention. If the government decides to let that power go, the insurance industry better hope that they are able to find a solution that the public finds acceptable. If not, the public will pressure politicians who don’t know what to do to take rash decisions which will come to bite the industry on its rear. And could even lead to a distruction in public trust in insurance altogether.
What’s stupid is the regultors not controlling this industry. What’s stupid is moving away from your home without even TRYING to do something about the issue. C’mon Kenney, you can’t write and you can’t debate the facts so you just sling insults. NICE. Study the issue for 3.5 years as I have and write when you have something intelligent to add the discussion. If I were to decide to leave (yielding to corporate greed) without a fight I’d have to move so far I’d end up in Tornado Alley. At least hurricane don’t arrive without any warnimg.
Come back to the discussion when you grow up and get your CPCU.
Jane, you are right, where are the regulators? To call the public “stupid” because they can’t vacate their homes and relocate is just plain “stupid”!
I think most of us reading the comments on this string would agree that the only “stupid” and certainly unprofessional comments that I have read are the ones from Jane and RAL. Jane, your CPCU studies were wasted. It proves that passing a course of study isn’t proof of common sense. Jane, I know you will find some childish and insulting thing to say back. Don’t waste your time. When I see your name and RAL from now on, I will skip the comments. GROW UP!
Aunti, I guess your comments are not childish & insulting! lol
As an agent for 35 years there is one thing I learned.
Don’t piss off the underwriter….they may show up underwriting your app some day.
Think more that a few people posting on here need to take a deep breath and more than one or two zannex.
I wholeheartedly agree with autie re: alphabet soup after one’s name. It’s never impressed me and the poster’s on this blog confirm that fact.