Rates will definately be on the rise due to the losses from last year, but I figure the rate hikes will take the current economical situations in consideration.
So hopefully rates will increase, but not as drastically as some companies would like.
In Texas we have a modified file & use system for rates. The big 3(State Farm, Farmers & Allstate)have been disallowed from file and use because of past rate issues. Any filing can be held up or disallowed if the Texas Dept of Insurance has a question or issue with filing.
Houston (Harris Co)already has seen a 10% rate increase along with higher deductibles for windstorm. Some markets have withdrawn from the area(Allstate) or limited writings(Nationwide).
As you move up North on I45 or I35, prices become cheaper. It appears the companies don’t want to write on seacoast so to make their quota the are all competing in DFW, Austin and to some extent San Antonio. This has made a wide range in premiums & deductibles in just 200 miles.
65% may be a stretch… A good portion of those losses would be from Hurricane Ike. My company doesn’t write in Texas, so I can’t comment on what portion. You don’t expect an event like that every year.
Most insurers use 3-5 years of non-catastrophe data to set a basic rate, then load in a catastrophe charge based on a longer time frame or a cat model. 20-year average catastrophe losses used to be the standard.
Rate indications should increase after incorporating the 2008 and Ike data, but a 65% hike would probably be excessive.
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But will they approve a rate hike if the insurance companies ask for it?
I am not sure how things work in Texas….can anyone comment on that?
Rates will definately be on the rise due to the losses from last year, but I figure the rate hikes will take the current economical situations in consideration.
So hopefully rates will increase, but not as drastically as some companies would like.
They should increase at lease 65% so the companies can break even. Geeeeeese.
Most of the increases are filed and approved already. Texas doesn’t have Florida’s problems… our rates are already high to begin with.
In Texas we have a modified file & use system for rates. The big 3(State Farm, Farmers & Allstate)have been disallowed from file and use because of past rate issues. Any filing can be held up or disallowed if the Texas Dept of Insurance has a question or issue with filing.
Houston (Harris Co)already has seen a 10% rate increase along with higher deductibles for windstorm. Some markets have withdrawn from the area(Allstate) or limited writings(Nationwide).
As you move up North on I45 or I35, prices become cheaper. It appears the companies don’t want to write on seacoast so to make their quota the are all competing in DFW, Austin and to some extent San Antonio. This has made a wide range in premiums & deductibles in just 200 miles.
65% may be a stretch… A good portion of those losses would be from Hurricane Ike. My company doesn’t write in Texas, so I can’t comment on what portion. You don’t expect an event like that every year.
Most insurers use 3-5 years of non-catastrophe data to set a basic rate, then load in a catastrophe charge based on a longer time frame or a cat model. 20-year average catastrophe losses used to be the standard.
Rate indications should increase after incorporating the 2008 and Ike data, but a 65% hike would probably be excessive.