Well, this looks like the unpleasant attitude that some companies are going to have, and that is that they announce a withdrawl with out even trying to fight for a rate increase. And some people thought it was only a threat that companies would leave if the can’t get a rate increase. Clearly this defeats that notion and reinforces the idea that Florida is not profitable. Fred did you hear that?, its not a threat any longer its a promise. Get ready to pay up, we have been enjoying good weather and low rates for longer than expected. I would guess we will see at least 6 other carriers announce a withdrawl in the next 6-12 months.
Fla goes like this: Reinsurance goes up 25%, carrier asks for 25%(makes the news)…Dept approves 8% and trashes Company publicly to boot. After reinsurance cost Carrier is in red before paying non Cat claims! No win situation. The only way to get adequate rate is start a new company have the old company “pull out” and offer replacement in new co.
It is a sad event for Fl HO consumers (except that they don’t know it yet) that a great company like Safeco is leaving, to be replaced by more untried-and-untested Takeout companies started by guys who think 5m is plenty of capital. A reprise of American Superior anyone?
Yes, you are right, the rates need to move up the to risk issue. But we should also push the state and request that all auto writers need to write homeowners. We should not let a company get away with a profiable line of business that they all compete against, and let the homeowner sit without out coverage. Lets be fair, one home for each two or three HO policies is about right. If safeco is leaving because of rates, let them annouce the issue to the public. The state does not get the message, wait unitl the next CAT 5 hitting South Florida, lets see how many of the take out companies will be able to handle the claims payments. The state will be in a position to now impose a state income tax which is built into this program, incase a large CAT 5 hits Florida. The clock is ticking!!!!!
The state can not impose a state income tax for any reason, We may be dumb, but thats in our state constitution. Citizens can pass assessments on as they are getting ready to do. I am not sure what “Program” you are speaking of that has an income tax built into it? I am not aware of any such creature and the state constitution does not allow it. It protects pregnant pigs, but does not allow state income taxes, GO FIGURE. If an admitted insurance company becomes insolvent as you refer to in a cat 5 situation, the insureds will be protected by the FIGA fund up to $300,000. there is no taxing provision in the FIGA fund, they also pass on assessments.
Try to get some wacked out communistic rule imposed that you must do something non profitable in order to do some that does make a profit and you will then be paying more for auto insurance also. Stupid knee jerk reactions will never make things better. Lets say you must drive to work on neighborhood roads on Monday, Tuesday and Wednesday, since these are less travelled roads this will help alleviate heavy traffic on main roads and you must do it 2 hours earlier than you would normally go to work, and you must take a fellow worker to work with you, this will help save gas. Would you be willing to do this? Or how about we say that you must pay an extra 30% for your groceries because the grocery store chain want to build another store in the next town over which is a lower income area. You additional contribution would make it possible for the grocery store to build a new store and offer lower rates to the people down the road. Sounds like the humanitarian thing to do, except you are losing money. Auto insurance in Florida is not profitable enough to use it as a bargaining tool to force a company to do what every company knows is a loosing venture. It will not happen. I think you should only buy gas from stations that are 10 miles from your home, because the stations near you have enough customers and are making money, but the ones away from you are not doing well,go help them out.
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Well, this looks like the unpleasant attitude that some companies are going to have, and that is that they announce a withdrawl with out even trying to fight for a rate increase. And some people thought it was only a threat that companies would leave if the can’t get a rate increase. Clearly this defeats that notion and reinforces the idea that Florida is not profitable. Fred did you hear that?, its not a threat any longer its a promise. Get ready to pay up, we have been enjoying good weather and low rates for longer than expected. I would guess we will see at least 6 other carriers announce a withdrawl in the next 6-12 months.
The exodus begins.
Fla goes like this: Reinsurance goes up 25%, carrier asks for 25%(makes the news)…Dept approves 8% and trashes Company publicly to boot. After reinsurance cost Carrier is in red before paying non Cat claims! No win situation. The only way to get adequate rate is start a new company have the old company “pull out” and offer replacement in new co.
It is a sad event for Fl HO consumers (except that they don’t know it yet) that a great company like Safeco is leaving, to be replaced by more untried-and-untested Takeout companies started by guys who think 5m is plenty of capital. A reprise of American Superior anyone?
Yes, you are right, the rates need to move up the to risk issue. But we should also push the state and request that all auto writers need to write homeowners. We should not let a company get away with a profiable line of business that they all compete against, and let the homeowner sit without out coverage. Lets be fair, one home for each two or three HO policies is about right. If safeco is leaving because of rates, let them annouce the issue to the public. The state does not get the message, wait unitl the next CAT 5 hitting South Florida, lets see how many of the take out companies will be able to handle the claims payments. The state will be in a position to now impose a state income tax which is built into this program, incase a large CAT 5 hits Florida. The clock is ticking!!!!!
The state can not impose a state income tax for any reason, We may be dumb, but thats in our state constitution. Citizens can pass assessments on as they are getting ready to do. I am not sure what “Program” you are speaking of that has an income tax built into it? I am not aware of any such creature and the state constitution does not allow it. It protects pregnant pigs, but does not allow state income taxes, GO FIGURE. If an admitted insurance company becomes insolvent as you refer to in a cat 5 situation, the insureds will be protected by the FIGA fund up to $300,000. there is no taxing provision in the FIGA fund, they also pass on assessments.
Try to get some wacked out communistic rule imposed that you must do something non profitable in order to do some that does make a profit and you will then be paying more for auto insurance also. Stupid knee jerk reactions will never make things better. Lets say you must drive to work on neighborhood roads on Monday, Tuesday and Wednesday, since these are less travelled roads this will help alleviate heavy traffic on main roads and you must do it 2 hours earlier than you would normally go to work, and you must take a fellow worker to work with you, this will help save gas. Would you be willing to do this? Or how about we say that you must pay an extra 30% for your groceries because the grocery store chain want to build another store in the next town over which is a lower income area. You additional contribution would make it possible for the grocery store to build a new store and offer lower rates to the people down the road. Sounds like the humanitarian thing to do, except you are losing money. Auto insurance in Florida is not profitable enough to use it as a bargaining tool to force a company to do what every company knows is a loosing venture. It will not happen. I think you should only buy gas from stations that are 10 miles from your home, because the stations near you have enough customers and are making money, but the ones away from you are not doing well,go help them out.