We are supposed to be an industry focused on facts and figures, not name calling and finger-pointing. This dialogue appears to have gotten off track.
The State of Florida Office of Insurance Regulation, as virtually all other DOIs, does not have the authority to review and revise reinsurance rates. Accordingly, it is a difficult expense component to address. Through the FHCF, they are trying to take control of the impact of reinsurance costs on premiums.
It seems to me that they are regulating to the full extent of their authority. Cost-based pricing is unpopular when costs are high. Get over it.
First of all Jane, kudos on your certifications. Its unfortunate that you took my comments as an insult. It was my mistake that my subject line made it seem that I was replying to your posts when in fact I was replying to someone who had posted on June 8th. I had read every post and simply clicked on add comment and started typing. A gentleman on June 8th had forcefully stated his distaste for socialism and stated he wished that government would stop protecting stupid people. My response was directed at him. Incidentally, I recommend using aliases. All criticism people make in my direction seems to bounce right off. I’m not at all offended by your comments. I have a joke; its pure gold: Why do they call it “Ovaltine?” The mug is round; the jar is round; they should call it “Rountine!”
To Joe, I attempted to make some commentary on state rate setting. I’m no expert, but if New Jersey auto rates are a guide in any sense, a free market to rate setting may not be such a horrible idea. If the New Jersey auto market continues to feel favorable results, more states are sure to follow. However the downside to McCarran Ferguson, and correct me if I’m mistaken, is that if Congress feels that the Industry is colluding to price gouging its policyholders in a free market pricing environment, it will simply repeal the act. I tend to think (but am open to be educated on the matter) that states may be holding on to the power to set rates in order to counter the potential collusion that could take place in the insurance market. States want the best rates for their citizenry but by allowing rate setting unfettered by government intervention is probably risky in their eyes as a result of the potential downfalls–the occurence of which could undermine the state-based regulatory structure entirely. Voters and Congress look to the bottom line of insurance premium rates and consumer protections and claims payout satisfaction. If the fiasco after hurricanes Katrina and Rita are any guide, many voters feel that the FL, MS, and LA Departments of Insurance failed them and their neighbors by allowing insurance companies to “step all over the little guy” in rejecting claims or referring some to NFIP and then increasing rates [as per catastrophe modeling].
I’m amazed at the negative reaction to the CPCU designation. The purpose of any eduction is to create people who want and can learn about anything they set their mind to learn. I’ve spent an incredible amount of time researching hurricanes and as far as the water here being different than Florida-it is different, it’s colder! Cold water has a huge effect on hurricanes-reducing their impact. We’ve only had a handfill of hurricane’s here(6)over the past 100 or so years (not 4 in one year like in FL)and the hurricanes that did make it did as much if not more damage inland than on the coast. If you look at maps of projected damage from a CAT 5 hurricane, Everyone on the East coast would have to move to the Mid West to escape potential hurricane damage. Again if we all moved West one of those pesky tornado’s would get us instead. I’m not about to move away from where 12 generations of my family have lived over my homeowner insurance premiums! I’ve also spent a lot of time researching the MA Fair plan (MPIUA), the board of Directors, the financials of the companies involved, MPIUA’s financials and testified at the MA Division of Insurance MPIUA rate hearing. MA and FL hurricane exposures are completely different!! Our building codes are different and we don’t build skyscraper’s on the beach which are esentially just giant sails to catch the wind! All I can say to anyone who compares the hurricane exposure of FL to MA is are you kidding me?!
Excuse me? COMPLETELY Different? A water molecule is about the same in Florida as it is in Massachusetts, as is the force of wind. Maybe you might be giving us a hidden meaning of the type of people that reside in the residences? What exactly do they teach you to get this so called See Pee See You grandiose ‘holier than thou’ letters?
Oh for Pete’s sake !
This is a good example of why we have so much legislation by superstition.
People deciding the way things are because they seem that way.
The ancient Greeks “knew” the wind was caused by trees waiving their branches.
There was never wind when the trees didn’t waive their branches.
So they knew they were right.
YaY Jane.
Moving because you don’t like something where you are is like changing from one cheap apartment to another.
The reality is that every place has an issue. Except for us here in North Texas, of course. Tornados and softball sized hail? No big deal. Texas is God’s country because it gets too hot for the devil.
Out of the forest or build some sort of fire proof bunker for a house. I don’t know that there is such a structure. The MGM Grand Hotel fire taught us that lesson.http://www.co.clark.nv.us/fire/ccfd_mgm.htm
Every place has its own hazards and applicable perils. It pays to pay attention to them. It’s why life insurance needs a seller.
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We are supposed to be an industry focused on facts and figures, not name calling and finger-pointing. This dialogue appears to have gotten off track.
The State of Florida Office of Insurance Regulation, as virtually all other DOIs, does not have the authority to review and revise reinsurance rates. Accordingly, it is a difficult expense component to address. Through the FHCF, they are trying to take control of the impact of reinsurance costs on premiums.
It seems to me that they are regulating to the full extent of their authority. Cost-based pricing is unpopular when costs are high. Get over it.
First of all Jane, kudos on your certifications. Its unfortunate that you took my comments as an insult. It was my mistake that my subject line made it seem that I was replying to your posts when in fact I was replying to someone who had posted on June 8th. I had read every post and simply clicked on add comment and started typing. A gentleman on June 8th had forcefully stated his distaste for socialism and stated he wished that government would stop protecting stupid people. My response was directed at him. Incidentally, I recommend using aliases. All criticism people make in my direction seems to bounce right off. I’m not at all offended by your comments. I have a joke; its pure gold: Why do they call it “Ovaltine?” The mug is round; the jar is round; they should call it “Rountine!”
To Joe, I attempted to make some commentary on state rate setting. I’m no expert, but if New Jersey auto rates are a guide in any sense, a free market to rate setting may not be such a horrible idea. If the New Jersey auto market continues to feel favorable results, more states are sure to follow. However the downside to McCarran Ferguson, and correct me if I’m mistaken, is that if Congress feels that the Industry is colluding to price gouging its policyholders in a free market pricing environment, it will simply repeal the act. I tend to think (but am open to be educated on the matter) that states may be holding on to the power to set rates in order to counter the potential collusion that could take place in the insurance market. States want the best rates for their citizenry but by allowing rate setting unfettered by government intervention is probably risky in their eyes as a result of the potential downfalls–the occurence of which could undermine the state-based regulatory structure entirely. Voters and Congress look to the bottom line of insurance premium rates and consumer protections and claims payout satisfaction. If the fiasco after hurricanes Katrina and Rita are any guide, many voters feel that the FL, MS, and LA Departments of Insurance failed them and their neighbors by allowing insurance companies to “step all over the little guy” in rejecting claims or referring some to NFIP and then increasing rates [as per catastrophe modeling].
I’m amazed at the negative reaction to the CPCU designation. The purpose of any eduction is to create people who want and can learn about anything they set their mind to learn. I’ve spent an incredible amount of time researching hurricanes and as far as the water here being different than Florida-it is different, it’s colder! Cold water has a huge effect on hurricanes-reducing their impact. We’ve only had a handfill of hurricane’s here(6)over the past 100 or so years (not 4 in one year like in FL)and the hurricanes that did make it did as much if not more damage inland than on the coast. If you look at maps of projected damage from a CAT 5 hurricane, Everyone on the East coast would have to move to the Mid West to escape potential hurricane damage. Again if we all moved West one of those pesky tornado’s would get us instead. I’m not about to move away from where 12 generations of my family have lived over my homeowner insurance premiums! I’ve also spent a lot of time researching the MA Fair plan (MPIUA), the board of Directors, the financials of the companies involved, MPIUA’s financials and testified at the MA Division of Insurance MPIUA rate hearing. MA and FL hurricane exposures are completely different!! Our building codes are different and we don’t build skyscraper’s on the beach which are esentially just giant sails to catch the wind! All I can say to anyone who compares the hurricane exposure of FL to MA is are you kidding me?!
Excuse me? COMPLETELY Different? A water molecule is about the same in Florida as it is in Massachusetts, as is the force of wind. Maybe you might be giving us a hidden meaning of the type of people that reside in the residences? What exactly do they teach you to get this so called See Pee See You grandiose ‘holier than thou’ letters?
Oh for Pete’s sake !
This is a good example of why we have so much legislation by superstition.
People deciding the way things are because they seem that way.
The ancient Greeks “knew” the wind was caused by trees waiving their branches.
There was never wind when the trees didn’t waive their branches.
So they knew they were right.
YaY Jane.
Moving because you don’t like something where you are is like changing from one cheap apartment to another.
The reality is that every place has an issue. Except for us here in North Texas, of course. Tornados and softball sized hail? No big deal. Texas is God’s country because it gets too hot for the devil.
Where do you think the CA wildfire victims should move to get away from wild fires…?
Just kidding……..
Out of the forest or build some sort of fire proof bunker for a house. I don’t know that there is such a structure. The MGM Grand Hotel fire taught us that lesson.http://www.co.clark.nv.us/fire/ccfd_mgm.htm
Every place has its own hazards and applicable perils. It pays to pay attention to them. It’s why life insurance needs a seller.