Officers that run companies have a responsibility to make profits. Investors demand it and employees count on it. The profits they make compare to the cost of the stock purchase price is minimal each year for insurance investors.
The thousands of employees that rely on their ledership to be profitable so they can have careers and provide for their families are the same ones that spend dollars in your community and drive our economy!
The claims information you have evolves on an annual basis. For at least the past 10 years, insurance companies, especially Allstate’s which is a leader in the industry, have determined that claims is key to acquiring and keeping customers.
Companies, including Allstate, have invested millions in their constantly evolving processes that make any process used in the past obsolete.
Politicians and especially the OIR both already know this. Their motives are insincere and sidetrack real solutions at the expense of Floridians.
ALLSTATE IS A NATIONAL COMPANY – NOT JUST A COMPANY DOING BUSINESS IN FLORIDA. On the Allstate website they tout, “Our year of record profits in 2006 continues our tradition of protecting shareholder capital while earning superior results. What lies behind these profits? Reduce our exposure to mega-catastrophes!” “To minimize our exposure we set up expanded market programs that allowed Allstate agencies to help customers obtain insurance from other companies.” “We must be successful in these efforts.” THE BEAT GOES ON – PROFITS OVER PEOPLE is the main emphasis at the “Big A.”
Allstate always floats to the top. We were above the average investment (for other homeowners insurers),” Allstate actuary Steven Armstrong said during a hearing before an administrative law judge at the Department of Insurance’s offices in downtown San Francisco.
Allstate officials did not offer specifics on where the company invested its funds.
Consumer advocates have challenged Allstate’s proposal and urged regulators to slash premiums by 30 percent, saving policyholders an average of $326 a year on their annual bills. Critics argue the insurer is flush with money, earning $5 billion in profits in 2006 and buying back $3 billion worth of company stock during the first nine months of 2007.
Allstate, the state’s No. 3 homeowner insurer, is bucking moves .
Standard auto property damage frequencies increased 2.8 percent while bodily injury gross claim frequencies decreased 2.8 percent compared to the fourth quarter of 2006. Auto property damage and bodily injury paid severities increased 2.2 percent and 9.3 percent, respectively. The standard auto loss ratio increased 5.3 points compared to the fourth quarter of 2006 to 70.3 in the fourth quarter of 2007.
For the year, revenues reached $36.8 billion and net income of $4.6 billion ($7.77 per diluted share), which the company said was the second highest in its history.
Do you not realize that when the government will not allow you to set an actuarily sound rate, it is time to leave? The only bad risk is an underpriced risk, and right now the Florida govt is doing just that. Minimizing rate increases for political gain, while making the state a “bad risk.” It is not necessarily that their are hurricans in Florida. As others have noted, catastrophes happen everywhere. The problem is when you cannot adequately rate the risk because of political grandstanding. How often we forget that insurance companies are here to make a profit!
Insurance Rate Increases, Industry Ties
By Brian H. Kern
October 16, 2007
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Florida officials have subpoenaed Allstate Insurance and its subsidiaries to get the insurer to explain why it is not lowering homeowners insurance rates in the state and to defend its dealings with the industry’s risk modeling and rating organizations.
The subpoenas direct the Allstate companies to appear at a January public hearing in Tallahassee before the Office of Insurance Regulation to testify regarding the companies’ reinsurance costs and their relationships to risk modeling companies, insurance rating organizations or insurance trade associations.
Gov. Charlie Crist and Insurance Commissioner Kevin McCarty announced the action at a news conference at which they questioned whether Allstate was living up to “the spirit and the letter” of a state law that requires insurers to pass along savings on reinsurance to the public.
“The legislation enacted in January was very specific about its requirement that insurers reduce the rates they are charging for homeowners insurance,” said McCarty. “We are continuing to investigate those companies that appear to be ignoring the intent of the legislature in its efforts to reduce premiums to consumers, and we want to hear the reasons behind those companies’ actions.”
The subpoenas have been issued to Allstate Floridian Indemnity Co., Allstate Floridian Insurance Co., Allstate Fire and Casualty Insurance Co., Allstate Indemnity Co., Allstate Insurance Co., Allstate Property & Casualty Insurance Co., Encompass Floridian Indemnity Co., Encompass Floridian Insurance Co., Encompass Indemnity Co., and Encompass Insurance Co. of America.
The subpoenaed companies combined comprised 7.9 percent of Florida’s residential property market as of June 30. They write more than 394,000 policies in the state.
Allstate Floridian Indemnity and Allstate Florida Insurance Co. are requesting rate increases of 28.3 percent and 41.9 percent respectively. Encompass Floridian Indemnity is requesting a 38.4 percent increase, and Encompass Floridian Insurance Co., is requesting a 39.7 percent increase, according to state officials.
Gov. Crist called the rate increase requests “outrageous” and vowed that the state would continue to press insurers for savings.
“Many Florida homeowners have been disappointed that property insurance rates have not dropped more, and I, too, am disappointed,” Crist said. “We have significant reason to believe that some insurers are violating both the spirit and the letter of the law passed earlier this year and may not be passing savings along to the customer. Instead, we have seen outrageous rate hike requests
said McCarty. “We are continuing to investigate those companies that appear to be ignoring the intent of the legislature in its efforts to reduce premiums to consumers, and we want to hear the reasons behind those companies’ actions.”
GT, Ouch! I do business in the Pacific Northwest–should my competitive position be inferior to regional companies who have no wind exposure on the other side of the country? Florida problems have to be solved in Florida and I hope to heaven that my company DOES make money nationwide year after year. Insurance companies are not charities; not Big A, SF, N, G, or even Little E.
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Officers that run companies have a responsibility to make profits. Investors demand it and employees count on it. The profits they make compare to the cost of the stock purchase price is minimal each year for insurance investors.
The thousands of employees that rely on their ledership to be profitable so they can have careers and provide for their families are the same ones that spend dollars in your community and drive our economy!
The claims information you have evolves on an annual basis. For at least the past 10 years, insurance companies, especially Allstate’s which is a leader in the industry, have determined that claims is key to acquiring and keeping customers.
Companies, including Allstate, have invested millions in their constantly evolving processes that make any process used in the past obsolete.
Politicians and especially the OIR both already know this. Their motives are insincere and sidetrack real solutions at the expense of Floridians.
netting Allstate billions of dollars in the process.
ALLSTATE IS A NATIONAL COMPANY – NOT JUST A COMPANY DOING BUSINESS IN FLORIDA. On the Allstate website they tout, “Our year of record profits in 2006 continues our tradition of protecting shareholder capital while earning superior results. What lies behind these profits? Reduce our exposure to mega-catastrophes!” “To minimize our exposure we set up expanded market programs that allowed Allstate agencies to help customers obtain insurance from other companies.” “We must be successful in these efforts.” THE BEAT GOES ON – PROFITS OVER PEOPLE is the main emphasis at the “Big A.”
Allstate always floats to the top. We were above the average investment (for other homeowners insurers),” Allstate actuary Steven Armstrong said during a hearing before an administrative law judge at the Department of Insurance’s offices in downtown San Francisco.
Allstate officials did not offer specifics on where the company invested its funds.
Consumer advocates have challenged Allstate’s proposal and urged regulators to slash premiums by 30 percent, saving policyholders an average of $326 a year on their annual bills. Critics argue the insurer is flush with money, earning $5 billion in profits in 2006 and buying back $3 billion worth of company stock during the first nine months of 2007.
Allstate, the state’s No. 3 homeowner insurer, is bucking moves .
Standard auto property damage frequencies increased 2.8 percent while bodily injury gross claim frequencies decreased 2.8 percent compared to the fourth quarter of 2006. Auto property damage and bodily injury paid severities increased 2.2 percent and 9.3 percent, respectively. The standard auto loss ratio increased 5.3 points compared to the fourth quarter of 2006 to 70.3 in the fourth quarter of 2007.
For the year, revenues reached $36.8 billion and net income of $4.6 billion ($7.77 per diluted share), which the company said was the second highest in its history.
GT,
Do you not realize that when the government will not allow you to set an actuarily sound rate, it is time to leave? The only bad risk is an underpriced risk, and right now the Florida govt is doing just that. Minimizing rate increases for political gain, while making the state a “bad risk.” It is not necessarily that their are hurricans in Florida. As others have noted, catastrophes happen everywhere. The problem is when you cannot adequately rate the risk because of political grandstanding. How often we forget that insurance companies are here to make a profit!
Insurance Rate Increases, Industry Ties
By Brian H. Kern
October 16, 2007
Send Feedback E-mail this Article Print this Article Article Reprints
Florida officials have subpoenaed Allstate Insurance and its subsidiaries to get the insurer to explain why it is not lowering homeowners insurance rates in the state and to defend its dealings with the industry’s risk modeling and rating organizations.
The subpoenas direct the Allstate companies to appear at a January public hearing in Tallahassee before the Office of Insurance Regulation to testify regarding the companies’ reinsurance costs and their relationships to risk modeling companies, insurance rating organizations or insurance trade associations.
Gov. Charlie Crist and Insurance Commissioner Kevin McCarty announced the action at a news conference at which they questioned whether Allstate was living up to “the spirit and the letter” of a state law that requires insurers to pass along savings on reinsurance to the public.
“The legislation enacted in January was very specific about its requirement that insurers reduce the rates they are charging for homeowners insurance,” said McCarty. “We are continuing to investigate those companies that appear to be ignoring the intent of the legislature in its efforts to reduce premiums to consumers, and we want to hear the reasons behind those companies’ actions.”
The subpoenas have been issued to Allstate Floridian Indemnity Co., Allstate Floridian Insurance Co., Allstate Fire and Casualty Insurance Co., Allstate Indemnity Co., Allstate Insurance Co., Allstate Property & Casualty Insurance Co., Encompass Floridian Indemnity Co., Encompass Floridian Insurance Co., Encompass Indemnity Co., and Encompass Insurance Co. of America.
The subpoenaed companies combined comprised 7.9 percent of Florida’s residential property market as of June 30. They write more than 394,000 policies in the state.
Allstate Floridian Indemnity and Allstate Florida Insurance Co. are requesting rate increases of 28.3 percent and 41.9 percent respectively. Encompass Floridian Indemnity is requesting a 38.4 percent increase, and Encompass Floridian Insurance Co., is requesting a 39.7 percent increase, according to state officials.
Gov. Crist called the rate increase requests “outrageous” and vowed that the state would continue to press insurers for savings.
“Many Florida homeowners have been disappointed that property insurance rates have not dropped more, and I, too, am disappointed,” Crist said. “We have significant reason to believe that some insurers are violating both the spirit and the letter of the law passed earlier this year and may not be passing savings along to the customer. Instead, we have seen outrageous rate hike requests
said McCarty. “We are continuing to investigate those companies that appear to be ignoring the intent of the legislature in its efforts to reduce premiums to consumers, and we want to hear the reasons behind those companies’ actions.”
Have policies that dont cover wind. Then increase property taxes and let the state take care of covering wind damage.
GT, Ouch! I do business in the Pacific Northwest–should my competitive position be inferior to regional companies who have no wind exposure on the other side of the country? Florida problems have to be solved in Florida and I hope to heaven that my company DOES make money nationwide year after year. Insurance companies are not charities; not Big A, SF, N, G, or even Little E.