not trying to force insurance companies to pay claims for non-covered events (such as, let’s see, could it be FLOOD?) when the consumer was too bloody cheap to buy the coverage.
I would NEVER consider doing business in that state. You don’t see Mississippi making it tough for insurers. They just roll up their sleeves and start rebuilding
It is a sad state of affairs in Louisiana as it is, but elect one of these dreamers to office and the entire state should say farewell to most of the insurance companies who are currently still willing to write insurance there.
“Force insurance companies to write wind/hail” HA! That’s when the companies pack up their toys and go home.
Unfortunately, until you figure out what a fair and properly priced premium is there is no way to even start talking with companies about writing more or new business. The idea of merging together with other coastal states has some merit because the premise of insurance is to spread the risk. The question is who would administer it???
For the candidates that want to force companies into something, MD Ins Lady is correct. Do you think State Farm and Allstate, who insure over 50% of the market in Louisiana, would hesitate to leave the State? Why don’t they force every oil company except one out of the state as well, or only allow one grovery store chain who gives the best prices!!
The flaw in the entire “coastal zone” concept is that it has to be based upon the belief that the insurance industry is unfairly inflating prices. You can’t “negotiate” lower rates simply because you have more exposure units. The coast will always be the coast, and the storm exposure is what it is. Besides, let’s look at what’s happened in these states – the Missisippi attorney general threatens criminal prosecution simply because insurers try to read the plain language of their form? Suits are filed that try to reverse well-reasoned federal court decisions on the flood exclusion – language approved in all states for decades, where literally dozens of judicial decisions have come to the same result?
In the end, Louisiana is a small state, with an archaic legal system, a history of political corruption and active rate suppression, and large exposures to natural disaster. The only outcome from trying to “force” the industry to do anything is to encourage all insurers to levae the state.
Politicians don’t have a clue about the insurance industry, they only try to regulate it so they can buy votes by promising lower rates. Sad, but true.
The best way to ensure adequate rates is to let the insurance companies set their own rates then let the market work. If a company’s rates are too high, insureds will switch to another company. Competition is what levels the playing field.
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not trying to force insurance companies to pay claims for non-covered events (such as, let’s see, could it be FLOOD?) when the consumer was too bloody cheap to buy the coverage.
I would NEVER consider doing business in that state. You don’t see Mississippi making it tough for insurers. They just roll up their sleeves and start rebuilding
Sad but true
Agreed.
It is a sad state of affairs in Louisiana as it is, but elect one of these dreamers to office and the entire state should say farewell to most of the insurance companies who are currently still willing to write insurance there.
“Force insurance companies to write wind/hail” HA! That’s when the companies pack up their toys and go home.
Unfortunately, until you figure out what a fair and properly priced premium is there is no way to even start talking with companies about writing more or new business. The idea of merging together with other coastal states has some merit because the premise of insurance is to spread the risk. The question is who would administer it???
For the candidates that want to force companies into something, MD Ins Lady is correct. Do you think State Farm and Allstate, who insure over 50% of the market in Louisiana, would hesitate to leave the State? Why don’t they force every oil company except one out of the state as well, or only allow one grovery store chain who gives the best prices!!
The flaw in the entire “coastal zone” concept is that it has to be based upon the belief that the insurance industry is unfairly inflating prices. You can’t “negotiate” lower rates simply because you have more exposure units. The coast will always be the coast, and the storm exposure is what it is. Besides, let’s look at what’s happened in these states – the Missisippi attorney general threatens criminal prosecution simply because insurers try to read the plain language of their form? Suits are filed that try to reverse well-reasoned federal court decisions on the flood exclusion – language approved in all states for decades, where literally dozens of judicial decisions have come to the same result?
In the end, Louisiana is a small state, with an archaic legal system, a history of political corruption and active rate suppression, and large exposures to natural disaster. The only outcome from trying to “force” the industry to do anything is to encourage all insurers to levae the state.
I’d love to see GEICO and Progressive be required to write homeowner’s insurance…
W
Politicians don’t have a clue about the insurance industry, they only try to regulate it so they can buy votes by promising lower rates. Sad, but true.
The best way to ensure adequate rates is to let the insurance companies set their own rates then let the market work. If a company’s rates are too high, insureds will switch to another company. Competition is what levels the playing field.