Don’t you worry, don’t you fear, the hard market will soon be here. keep tooting that horn. Liberty Mutual and the Barack-backed insurance carriers, Hartford and AIG, will not let the hard market happen. Liberty doesn’t have to report results, and the others are backed by billions to continue driving prices down. Underwriting is out the window. Losses? What stinking losses? Who ever heard of any stinking losses? or should I say, we don’t need any stinking underwriting!! (I think that was a direct quote from the Lib Mutual CEO?)
I will say that the end result of this is that by the end of the year there will be some carriers so deeply in trouble that mergers or acquisitions will be an absolute must. MarketWatcher where are you?
Sounds like we have a bitter former LM employee on the message boards today. Someone should probably point out to you that LM does report their results because they are a Mutual Stock Holding company. Although they are privately held and not publicly traded they do to report results. You might want to do some research.
As for the other carriers, AIG isn’t Barack backed it is Bush backed and Barack only continues to hold it up. Hartford is Barack’s fault as he let the TARP funds apply to them.
Regarding the pricing models of the three companies, last time i checked their combined ratios were all under 100% which, as any person that works in the industry with half a brain knows, means they are making money. So underwriting aside you cannot bash companies whose P&C operations are making the almight dollar.
Did this article really say a storm would be good for the industry?
Somehow paying $25,000-$150,000 wind claims on $2,500-$15,000 policies followed by a rate increase (not to mention wind assessments from the states) does not seem like a “good deal”… especially as noted above when there are some players that are larger and seemingly less concerned with holding the line on pricing.
Also let’s not forget that some states have specific legislation prohibiting reductions in terms/material increases in rates due solely to a catastrophic storm event.
Excuse me for saying it but isn’t this kind of like saying a terrorist attack would be good for national security?
LOL that’s funny, Matt…b/c terrorist attacks are exceptionally good for national security.
And Former Status Quo, re: combined ratios, tallyman is referring to current underwriting blunders and mispricing…why would that be reflected in current combined ratios? Those losses won’t be tallied for years. BECAUSE CURRENT COMBINED RATIOS ARE THE RESULT OF PAST UNDERWRITING DECISIONS.
Ever wonder why the insurance industry has a bad reputation? This article is absurd. No responsible person from any insurance Company is hoping for a devastating hurricane to hit the U.S. It’s not just property that would be lost, lives would be lost. They are irreplaceable at any cost.
There is no such thing as a hurricane. Hurricanes are just a conspiracy perpetrated by the goverment to land alien warships into the Carribean so they can launch attacks on US Citizens.
What is a volleyball coach doing reading Insurance Journal? If your wife is an LM underwriting manager, then I agree – she does not spend her day sitting on her thumbs. She spends most of her day laying down. Because LM and their regional carriers are the biggest whXres and on the street right now.
Silver Lining? Is that a backhanded reference to carriers like West Bend begging for a hard market so that they can start charging higher rates? West Bend in bad bad shape right now becuase of all of their contracting mishaps and misjudgment. We just got rid of them because we can see the black cloud underneath the supposed silver lining.
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Don’t you worry, don’t you fear, the hard market will soon be here. keep tooting that horn. Liberty Mutual and the Barack-backed insurance carriers, Hartford and AIG, will not let the hard market happen. Liberty doesn’t have to report results, and the others are backed by billions to continue driving prices down. Underwriting is out the window. Losses? What stinking losses? Who ever heard of any stinking losses? or should I say, we don’t need any stinking underwriting!! (I think that was a direct quote from the Lib Mutual CEO?)
I will say that the end result of this is that by the end of the year there will be some carriers so deeply in trouble that mergers or acquisitions will be an absolute must. MarketWatcher where are you?
Sounds like we have a bitter former LM employee on the message boards today. Someone should probably point out to you that LM does report their results because they are a Mutual Stock Holding company. Although they are privately held and not publicly traded they do to report results. You might want to do some research.
As for the other carriers, AIG isn’t Barack backed it is Bush backed and Barack only continues to hold it up. Hartford is Barack’s fault as he let the TARP funds apply to them.
Regarding the pricing models of the three companies, last time i checked their combined ratios were all under 100% which, as any person that works in the industry with half a brain knows, means they are making money. So underwriting aside you cannot bash companies whose P&C operations are making the almight dollar.
tallyman, my wife is an LM commercial underwriting manager. She doesn’t just sit on her thumbs all day. She and her staff at LM do indeed underwrite.
Did this article really say a storm would be good for the industry?
Somehow paying $25,000-$150,000 wind claims on $2,500-$15,000 policies followed by a rate increase (not to mention wind assessments from the states) does not seem like a “good deal”… especially as noted above when there are some players that are larger and seemingly less concerned with holding the line on pricing.
Also let’s not forget that some states have specific legislation prohibiting reductions in terms/material increases in rates due solely to a catastrophic storm event.
Excuse me for saying it but isn’t this kind of like saying a terrorist attack would be good for national security?
LOL that’s funny, Matt…b/c terrorist attacks are exceptionally good for national security.
And Former Status Quo, re: combined ratios, tallyman is referring to current underwriting blunders and mispricing…why would that be reflected in current combined ratios? Those losses won’t be tallied for years. BECAUSE CURRENT COMBINED RATIOS ARE THE RESULT OF PAST UNDERWRITING DECISIONS.
As anyone w/ half a brain knows.
Ever wonder why the insurance industry has a bad reputation? This article is absurd. No responsible person from any insurance Company is hoping for a devastating hurricane to hit the U.S. It’s not just property that would be lost, lives would be lost. They are irreplaceable at any cost.
There is no such thing as a hurricane. Hurricanes are just a conspiracy perpetrated by the goverment to land alien warships into the Carribean so they can launch attacks on US Citizens.
What is a volleyball coach doing reading Insurance Journal? If your wife is an LM underwriting manager, then I agree – she does not spend her day sitting on her thumbs. She spends most of her day laying down. Because LM and their regional carriers are the biggest whXres and on the street right now.
Silver Lining? Is that a backhanded reference to carriers like West Bend begging for a hard market so that they can start charging higher rates? West Bend in bad bad shape right now becuase of all of their contracting mishaps and misjudgment. We just got rid of them because we can see the black cloud underneath the supposed silver lining.
LOL @ alien conspiracy theory and Liberty whores.