I’m with NY guy. These clowns are ALWAYS inaccurate. Why bother with these doom and gloom made-up forecasts whose only value is to the insurance companies who fund them so the companies can jack rates. Its the old “you’re really going to get clobbered this year so we have to jack up your HO rates” routine only to have nothing happen. Then next year they say the same thing. But you say, “I’ve lived on the CT coast the past twenty-five years and never had to file a HO claim!” And the insurance companies say (this is classic) “Then you’re due!” and they jack up the rates anyway!! HA-HA-HA, this joke never gets old!!
On the other hand (and may the Gods of chance forgive me for even THINKING this), I can understand insurance companie’s actions.
They hear these dire doom & gloom predictions. Even if they themselves don’t believe them, with everybody else battening down the hatches, what choice do they have? If a big loss were to occur, like a Hurricane Andrew, Katrina or Rita, and they didn’t heed the doom & gloomers, they’ll be pilloried.
If they DO follow the crowd, they can just say it was conventional wisdom. However, to my way of thinking, if they don’t believe the doomsayers but they do follow their advice, they’re just cowards.
If you know anything at all about how Insurance Companies file their rates, then you would know that companies cannot just increase their rates when they feel like it or when these FORECASTS come out.
First you have Acutaries, and they are going to look at their company’s loss ratio; for the company as a whole and in the states that were or will be most affected. Then they are going to make recommendations to those in charge, it’s the Company Big Wigs that are going to decide if the rate changes will work or not in an already soft market. If they decide rates need to be increased, (or decreased as they were in Florida in 2006) then the compnay has have to file their changes with the State DOI and wait for approval. Not all states are file and use like, but as a New York agent NY Guy should know it takes forever to get rate changes approved in that and many other states. Then if the changes are approved they will not be immediately in force.
Unfortunately rate increases like the ones you all are dooming and glooming about thend to occur after a major catistrophic event, when companies are needing to recoup their losses.
Rates cannot and are not changed just because the FORECAST (remember this means TO ESTIMATE)says this is going to be a very active Tropical Hurricane Season or not. (You may not get hit with Hurricanes alot in CT and NY but don’t forget they do turn into Noreasters)
“Unfortunately rate increases like the ones you all are dooming and glooming about thend to occur after a major catistrophic event, when companies are needing to recoup their losses.”
You are kidding aren’t you? My rates have gone up 300% in a NON-CAOSTAL area of Florida where there has not been a hurricane hit for over 60 years! The insurance companies raise rates as often as they can and the “doom and gloom” forecasters add to the problem. I don’t think they have a clue. Just look at the last two years they were so far off their predictions it is a laughing joke!! With the joke being on the residents of Florida with outrageous premiums!
Rates are one thing, but availability is a bigger issue. Most companies will not write HO within a mile of the south shore of Long Island, and within a half mile of the north shore. No exceptions.
So, in order to get coverage at all, insureds are forced to use Lloyds or excess carriers, sometimes for homes whose repalcement is under $200,000. These are not McMansions. These are average to below average in terms of values.
Again, Long Island hasn’t had a hurricane hit since Spetemner of 1987 (Gloria). The damage from N’oreasters hasn’t been bad either.
All the carriers I speak with say the same thing: it’s teh re-insurers who are causing the problem, and they are basing THEIR actions on thse profiles, modelers, and so called experts. When the experts are wrong for years (now decades) in a row, they just continue with their doom and gloom predictions and insureds, and agents & brokers get the beating.
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“When are the Noble Proze folks going to call me?”
Err, your proze isn’t very noble.
Why not try selling another form of insurance?
guess I should have said Noble Prose?
I’m with NY guy. These clowns are ALWAYS inaccurate. Why bother with these doom and gloom made-up forecasts whose only value is to the insurance companies who fund them so the companies can jack rates. Its the old “you’re really going to get clobbered this year so we have to jack up your HO rates” routine only to have nothing happen. Then next year they say the same thing. But you say, “I’ve lived on the CT coast the past twenty-five years and never had to file a HO claim!” And the insurance companies say (this is classic) “Then you’re due!” and they jack up the rates anyway!! HA-HA-HA, this joke never gets old!!
On the other hand (and may the Gods of chance forgive me for even THINKING this), I can understand insurance companie’s actions.
They hear these dire doom & gloom predictions. Even if they themselves don’t believe them, with everybody else battening down the hatches, what choice do they have? If a big loss were to occur, like a Hurricane Andrew, Katrina or Rita, and they didn’t heed the doom & gloomers, they’ll be pilloried.
If they DO follow the crowd, they can just say it was conventional wisdom. However, to my way of thinking, if they don’t believe the doomsayers but they do follow their advice, they’re just cowards.
If you know anything at all about how Insurance Companies file their rates, then you would know that companies cannot just increase their rates when they feel like it or when these FORECASTS come out.
First you have Acutaries, and they are going to look at their company’s loss ratio; for the company as a whole and in the states that were or will be most affected. Then they are going to make recommendations to those in charge, it’s the Company Big Wigs that are going to decide if the rate changes will work or not in an already soft market. If they decide rates need to be increased, (or decreased as they were in Florida in 2006) then the compnay has have to file their changes with the State DOI and wait for approval. Not all states are file and use like, but as a New York agent NY Guy should know it takes forever to get rate changes approved in that and many other states. Then if the changes are approved they will not be immediately in force.
Unfortunately rate increases like the ones you all are dooming and glooming about thend to occur after a major catistrophic event, when companies are needing to recoup their losses.
Rates cannot and are not changed just because the FORECAST (remember this means TO ESTIMATE)says this is going to be a very active Tropical Hurricane Season or not. (You may not get hit with Hurricanes alot in CT and NY but don’t forget they do turn into Noreasters)
FL U/W is from PT Jefferson, Long Island
“Unfortunately rate increases like the ones you all are dooming and glooming about thend to occur after a major catistrophic event, when companies are needing to recoup their losses.”
You are kidding aren’t you? My rates have gone up 300% in a NON-CAOSTAL area of Florida where there has not been a hurricane hit for over 60 years! The insurance companies raise rates as often as they can and the “doom and gloom” forecasters add to the problem. I don’t think they have a clue. Just look at the last two years they were so far off their predictions it is a laughing joke!! With the joke being on the residents of Florida with outrageous premiums!
Rates are one thing, but availability is a bigger issue. Most companies will not write HO within a mile of the south shore of Long Island, and within a half mile of the north shore. No exceptions.
So, in order to get coverage at all, insureds are forced to use Lloyds or excess carriers, sometimes for homes whose repalcement is under $200,000. These are not McMansions. These are average to below average in terms of values.
Again, Long Island hasn’t had a hurricane hit since Spetemner of 1987 (Gloria). The damage from N’oreasters hasn’t been bad either.
All the carriers I speak with say the same thing: it’s teh re-insurers who are causing the problem, and they are basing THEIR actions on thse profiles, modelers, and so called experts. When the experts are wrong for years (now decades) in a row, they just continue with their doom and gloom predictions and insureds, and agents & brokers get the beating.