Points taken about the federal government…but there has to be a way to solve this chronic market problem with some kind of insurance solution. Can the risk be spread over many states that are exposed to hurricanes? There has to be a way to set up an entity similar to the California Earthquake Authority that would allow carriers to define their exposure to the hurricane hazard and bring stability to the market. I can’t imagine anybody is satisfied with the status quo.
Chuck: Back in you cage now, little feller. The CEA is a disater waiting to happen. So few people buy its products, that FEMA will have to cover more than 80% of any earthquake structural damage in any big quake.
Cute title..but not relevant to the issue. I don’t know where you come up with your figures, but they are seemingly plucked from thin air. CEA is only obligated to those “few people” who buy its products and the industry is no longer uncontrollably exposed to the earthquake hazard. FEMA’s actions are unrelated to this issue. I am only interested in a solution that takes care of consumers who have made a choice to insure against hurricanes. By the way: there is nothing “little” about me. Want to compare biceps?
What a mess! Florida has been trying to solve their hurricane exposure problem with one bad solution after another for years. All of the new programs inevitably fall apart because they are not based on sound insurance principles. They are political plots designed to appear painless to the consumer and distance office holders from a reckoning when the bill comes due. We solved California’s earthquake exposure with the California Earthquake Authority. Why can’t florida do the same with hurricanes? An even better idea would be to create a federal “National Disaster Authority” to handle these kinds of events. That takes leadership, though, and few term limited politicians want to grab a difficult issue like this.
Sure, get the Feds involved and lets let the FEMA folks handle hurricane claims too. The same folks that paid out over 20 million in to aide hurricane victims in DADE county where sustained winds never even reached hurricane strength.
First off I congratulate you for knowing that anytime you involve the gov’t into a business, it’s a bust. What you don’t know is the following: Insurance companies are regulated and if they approach the FL. Dept. of Fiancial Services for a rate increase the company/corp. opens up its financail statments and if they (State of FL) deems you’ve made to much money then no rate in crease.
2) Losses from hurricanes are spread across the country with major national insurance companies, therefore folks in New Mexico are charged an increase for the Hurricane problem in Fl. as well as insurance fraud with resprects to auto insurance we all pay for that. We need to get the Govt out of the insurance business here in FL or otherwise they’ll end up like Orange Co. Ca did years ago by going bankrupt. The storms will keep coming and there’s nothing going to stop them,nothing…
I’m very well aware how rates are set…I have some background in this…and I am also aware of how resistant companies are to expanding Florida exposure. If it was a simple matter of raising rates in the rest of the country, there would be no Florida problem. At this point, it is clear that the private sector does not see a way to profitably offer an adequate hurricane product. Since insurance is so heavily regulated by the government, it is imperative that the government create the conditions for the market to solve the problem. There are several approaches. Why Florida continues to reach for these tortured and inadequate schemes is beyond me. One problem is that the industry is not speaking with one voice and offering a real market solution. Without that authoritative voice, politicians step into the vacuum and try to “outlaw” the problem.
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Points taken about the federal government…but there has to be a way to solve this chronic market problem with some kind of insurance solution. Can the risk be spread over many states that are exposed to hurricanes? There has to be a way to set up an entity similar to the California Earthquake Authority that would allow carriers to define their exposure to the hurricane hazard and bring stability to the market. I can’t imagine anybody is satisfied with the status quo.
Chuck: Back in you cage now, little feller. The CEA is a disater waiting to happen. So few people buy its products, that FEMA will have to cover more than 80% of any earthquake structural damage in any big quake.
Cute title..but not relevant to the issue. I don’t know where you come up with your figures, but they are seemingly plucked from thin air. CEA is only obligated to those “few people” who buy its products and the industry is no longer uncontrollably exposed to the earthquake hazard. FEMA’s actions are unrelated to this issue. I am only interested in a solution that takes care of consumers who have made a choice to insure against hurricanes. By the way: there is nothing “little” about me. Want to compare biceps?
What a mess! Florida has been trying to solve their hurricane exposure problem with one bad solution after another for years. All of the new programs inevitably fall apart because they are not based on sound insurance principles. They are political plots designed to appear painless to the consumer and distance office holders from a reckoning when the bill comes due. We solved California’s earthquake exposure with the California Earthquake Authority. Why can’t florida do the same with hurricanes? An even better idea would be to create a federal “National Disaster Authority” to handle these kinds of events. That takes leadership, though, and few term limited politicians want to grab a difficult issue like this.
NO!! No more National insurance anything. Federal Flood is hard enough to deal with as it is, can’t imagine a federal Hurricane program.
Sure, get the Feds involved and lets let the FEMA folks handle hurricane claims too. The same folks that paid out over 20 million in to aide hurricane victims in DADE county where sustained winds never even reached hurricane strength.
First off I congratulate you for knowing that anytime you involve the gov’t into a business, it’s a bust. What you don’t know is the following: Insurance companies are regulated and if they approach the FL. Dept. of Fiancial Services for a rate increase the company/corp. opens up its financail statments and if they (State of FL) deems you’ve made to much money then no rate in crease.
2) Losses from hurricanes are spread across the country with major national insurance companies, therefore folks in New Mexico are charged an increase for the Hurricane problem in Fl. as well as insurance fraud with resprects to auto insurance we all pay for that. We need to get the Govt out of the insurance business here in FL or otherwise they’ll end up like Orange Co. Ca did years ago by going bankrupt. The storms will keep coming and there’s nothing going to stop them,nothing…
I’m very well aware how rates are set…I have some background in this…and I am also aware of how resistant companies are to expanding Florida exposure. If it was a simple matter of raising rates in the rest of the country, there would be no Florida problem. At this point, it is clear that the private sector does not see a way to profitably offer an adequate hurricane product. Since insurance is so heavily regulated by the government, it is imperative that the government create the conditions for the market to solve the problem. There are several approaches. Why Florida continues to reach for these tortured and inadequate schemes is beyond me. One problem is that the industry is not speaking with one voice and offering a real market solution. Without that authoritative voice, politicians step into the vacuum and try to “outlaw” the problem.
I concur whole heartedly with your last statement. Get rid of the politicians and let free markets prevail.
Bill