Allstate Defends Property Insurance Rate Proposal to Lawmakers

February 6, 2008

  • February 6, 2008 at 2:32 am
    Dick says:
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    If I’ve heard it once I’ve heard it a hundred times. I know they paid out more than they took in in 2004 and 2005. What has happened since then? Has anyone ever heard about the experience for 2006 and 2007?

  • February 6, 2008 at 2:39 am
    Midwest says:
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    Dick,

    There were 4 tornados that went thru FL on 12/25/06 and also multiple tornados in Feb ’07

  • February 6, 2008 at 2:57 am
    Florida market watcher says:
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    If the OIR and the legislature were truly interested in keeping rates low for Florida residents (as opposed to playing politics), they would do a better job of monitoring for insolvencies and of watching Citizens and the FHCF. But for Poe, shortfalls in Citizens’ accounts, etc., Florida residents would be paying more than 10% less than they are paying now. The OIR and the vast bureaucratic mess that makes up the state’s insurance administration (SBA, FHCF, FIGA, etc.) should get their own houses in order before pointing fingers at private market carriers who rate based on risk and not based on getting votes.

  • February 6, 2008 at 3:39 am
    acm says:
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    I work for a major carrier that writes in Florida and we’re getting killed there and our rate increase request was flat denied. It’s a terrible insurance climate.

  • February 6, 2008 at 4:22 am
    Dick says:
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    Allstate Floridian Chairman and CEO Joe Richardson said his company paid out about $1 billion more in claims in those two years than it took in premiums.

    That is the most irrelivant statement ever!
    What about all the years they have made a profit?

  • February 6, 2008 at 4:48 am
    tb says:
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    It only takes one year of hurricanes to wipe out ten years of profits. Most companies have been running a deficit over the long haul in Florida. If you take all of the years of profits and all of the years of losses and total them out over the last twenty years, I don’t think you will find many companies on the positive side of the equation.

  • February 6, 2008 at 4:54 am
    Dick says:
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    Then why are they still trying to ANY business down there? Do they like losing money?

  • February 6, 2008 at 6:08 am
    Superjuster says:
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    It would seem to me if the profit potential was so great in Florida there would be dozens more companies wanting to write coverage there.

  • February 6, 2008 at 6:23 am
    Good Hands says:
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    The years Allstate made money in Florida? Katrina wiped out all the historical home insurance profits for Allstate in seven states for all of the years we did business in those states. All of it in one storm. Add another billion or so in Florida alone and we have what they call a rating situation.
    You are right, why do we keep trying? Change the name to Moststates?

  • February 7, 2008 at 8:04 am
    TEXAN says:
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    The Government idea that Rachael sugguested is actually an idea promoted by Allstate right now. They cannot write policies without wind coverage because it is not allowed by the OIR. In Texas insurance companies do have that option in some counties and customers get a seperate policy for Wind and Hurricane coverage through the Texas Wind Pool.

    What Allstate suggested after hurricane Katrina and the many other storms that year is to have a National Program similar to the current National Flood Program.



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