It is already a loosing proposition to provide HO coverage in Texas! There are so many companies that will pull out the minute they start this “overhaul”. Underwriting will be so tight most consumers will be forced into the non admitted market. Maybe we should review the commonalities between Texas and Florida and learn from their mistakes….
On the other-hand, this would be good for folks working in the surplus lines market. We might even convince the largest Texas HO writers to pull out. The fair plan would be HUGE!
Surplus lines seems to be the most reasonable way to write homes in Texas as the admitted markets have mickey moused up their endorsements to the point that they don’t cover much anyway.
Very true, but the non admitted market is less than $100M in premium right now. The admitted market is over $5B, so there is some efficiency there.
If some of these reforms pass, then surplus may be the only option for some consumers. Plus since there is no requirement to file forms in the non admitted market, the public looses the conformity they currently take for granted with admitted carriers. For example, can you think of a roof exclusion that is filed and in use in a large HO carriers program? Plenty of ACV on roof with RC on dwelling forms, but the state is very unlikely to approve a total exclusion. We have tried and only got it approved in TDP with large premium concessions, and only on old roofs.
This would just be bad news for consumers, good for independent agents and MGAs. Being from Houston, Bill White of all people should understand how hard it is to FIND decent HO insurance. If we place further restrictions on the willing participants, the state would loose some good carriers.
That’s just my two cents – I’m not an expert, but I did stay at a Holiday Inn Express last night…
And here’s another thought. Can you think of a reason why the wind pool should be subsidized? Maybe we should operate an actuarially wind pool… Let’s start there!
Why in the world do we have the TDI to regulate rates and have a Consumer Complaint department? We may as well disband the department and save some money on bureaucrat salaries. The free market should be the one to decide rates on Homeowners. If one company charges too much, another company will take it away from them. In my view, HO is a very competitive market even though Texas is a weather state and many years has a bad loss ratio for companies.
To Puzzled Agent, You cannot say that sort of thing, using facts, how dare you! That will put the “consumer groups” out of business and then where will all of those people work???? They are just trying to protect us… Right???
Excuse me for my common sense approach. I have been at this over 30 years and have never seen it this crazy. These “Consumer” groups are very like the lawyer infested Obama supporters who are trying to regulate and run every aspect of our lives. As Arnold said to the truck driver in Terminator – GET OUT! That is what I want these groups and government to do.
I have another question why is the insurance industry even regulated? Why isn’t everyone’s industry regulated out of the you know what?? We should regulate grocery prices, haircuts, gasoline, office supplies, restuarant meals and all of it.
Stick around Doug. If we don’t turn this regulating, taxing and spending Congress on 11-2, we will have all these things you mention regulated and taxed out the kazoo. Progressive liberals think they know better for us and can dictate every aspect of our lives. They are the ones we need to send to Venezuela. Hugo will welcome them with open arms.
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It is already a loosing proposition to provide HO coverage in Texas! There are so many companies that will pull out the minute they start this “overhaul”. Underwriting will be so tight most consumers will be forced into the non admitted market. Maybe we should review the commonalities between Texas and Florida and learn from their mistakes….
On the other-hand, this would be good for folks working in the surplus lines market. We might even convince the largest Texas HO writers to pull out. The fair plan would be HUGE!
Good comments —-
Surplus lines seems to be the most reasonable way to write homes in Texas as the admitted markets have mickey moused up their endorsements to the point that they don’t cover much anyway.
Very true, but the non admitted market is less than $100M in premium right now. The admitted market is over $5B, so there is some efficiency there.
If some of these reforms pass, then surplus may be the only option for some consumers. Plus since there is no requirement to file forms in the non admitted market, the public looses the conformity they currently take for granted with admitted carriers. For example, can you think of a roof exclusion that is filed and in use in a large HO carriers program? Plenty of ACV on roof with RC on dwelling forms, but the state is very unlikely to approve a total exclusion. We have tried and only got it approved in TDP with large premium concessions, and only on old roofs.
This would just be bad news for consumers, good for independent agents and MGAs. Being from Houston, Bill White of all people should understand how hard it is to FIND decent HO insurance. If we place further restrictions on the willing participants, the state would loose some good carriers.
That’s just my two cents – I’m not an expert, but I did stay at a Holiday Inn Express last night…
And here’s another thought. Can you think of a reason why the wind pool should be subsidized? Maybe we should operate an actuarially wind pool… Let’s start there!
Tony,
Good points. Trust me, i understand the issue with Harris county homeowner carriers, but first things first.
To get elected i understand i have to bash insurance companies and obamacare. Right?
Why in the world do we have the TDI to regulate rates and have a Consumer Complaint department? We may as well disband the department and save some money on bureaucrat salaries. The free market should be the one to decide rates on Homeowners. If one company charges too much, another company will take it away from them. In my view, HO is a very competitive market even though Texas is a weather state and many years has a bad loss ratio for companies.
To Puzzled Agent, You cannot say that sort of thing, using facts, how dare you! That will put the “consumer groups” out of business and then where will all of those people work???? They are just trying to protect us… Right???
Excuse me for my common sense approach. I have been at this over 30 years and have never seen it this crazy. These “Consumer” groups are very like the lawyer infested Obama supporters who are trying to regulate and run every aspect of our lives. As Arnold said to the truck driver in Terminator – GET OUT! That is what I want these groups and government to do.
Here Here to Puzzled Agent.
I have another question why is the insurance industry even regulated? Why isn’t everyone’s industry regulated out of the you know what?? We should regulate grocery prices, haircuts, gasoline, office supplies, restuarant meals and all of it.
Or we could just move to Venezuela…
Stick around Doug. If we don’t turn this regulating, taxing and spending Congress on 11-2, we will have all these things you mention regulated and taxed out the kazoo. Progressive liberals think they know better for us and can dictate every aspect of our lives. They are the ones we need to send to Venezuela. Hugo will welcome them with open arms.