well, if i remember correctly — insurance companies send the rates they plan and any increases to the state for approval. if a consumer believes that it is too much, then they need to shop around. it does not matter if the ceo makes $26 billion@yr (of course, i wish i could make tha money). the home insurance needs to make sure that it does provide the coverage that you\’ll need for the claim that you might possible file. if you are willing to pay more for the insurance, then you are actually accepting the rates/risk they have set for you. one thing you have to remember is that, insurance is a business too. they want to make some kind of profit despite the catastrophic event sicne they have or should have funds available for that event. so don\’t fault the insurance company on the premiums it takes, but remember that the fault lies w/in the system, whereas the state insurance commissioner allows them to take those rates…
1. The quickest reform is the return insurance to the private sector. The quickest way to lower pricing is let the market place compete for business. No force is quicker to reduce prices than competition. The quickest way to get a non-producing asset is price your product too high. Non-producing assets cannot be tolerated by any business. Lowering the price to compete with the competition corrects the problem.
#2 You cannot compete and overpay anybody.
Adam Smith 101.
I fully agree that to have lower rates, you must remove the state and legislation from the formula. Like another posted comment said, you must have competition in the market. Without competition, carriers get as much exposure as they want and as much rate as they want. With adequate rates, carriers would have to compete to get the share of business that they need to generate enough premium and (hopefully) profit to keep their companies active. They all must have a certain amount of business (premium) to keep their doors open. Without adequate rate and competition, carriers can charge whatever they want.
The rep of the organization against Citizen says the Citizens CEO makes $26 Billion? Nice work if you can get it.
I agree, Citizens should close down and Florida needs to create a free and open market. Let the insurers compete and fight it out. Pricing will quickly cluster around a competitive level. Sure, pricing won\’t ever be as low as costs in a state without hurricane exposure but at least a monopoly power won\’t exist and the government won\’t be able to scare away threats to the monopoly power.
Citizens needs a tool that would notify them when a quote is made through an admitted carrier. What\’s happenning is quotes are being given to potential insured\’s through admitted carriers and the rate is higher than Citizens rate. So the customer goes to another agency and takes the Citizen policy when it\’s designed to be the market of last resort. It just doesn\’t work and the state isn\’t smart enough to figure it out.
It is funny to read this article and try to understand how out of touch the voters are with the insurance situation. It was just noted a few weeks ago that the CEO of Citizens was resigning and his salary was around $200,000 I beleive. Second, much of the 7 hour meeting was focused on dealing with the ire of Citizens. Thank the Lord for Citizens. If it didn\’t exist, where would the bulk of the people get their property insurance? And if they could find it, given the capacity issues in Florida\’s property insurance market, how outrageous would the premium be?
The obvious answer is to create an environment of competition, and to create an environment of capacity which will create the competition.
YADA-YADA-YADA
nothing is going to change anytime soon it will be 3-4 months before any changes could be made under the new state senate and house. Folks we have gotten off cheap for to long and now it is catch up time.
$26 billion- the whole dam industry did not sell that much in Florida last year.
Between the property taxes (set to help only those older citizens in Broward/Dade counties), cost to insure those investments, you will have middle aged, and younger people leaving the state because incomes don\’t off-set the cost of living down here in paradise. This word is loosing it\’s effect to many. North Carolina is becoming the state of choice for many of my wealthier friends to relocate. Something needs to be done to bring back the appeal of living in South Florida.
I live in Wisconsin and feel insurance is too high do to losses associated with tornado, hail and car/deer accidents. Can something be done to subsidize that as well.
Otherwise either myself or others might need to CHOOSE to live elsewhere, or accept the costs associated with our state of choice and learn to spend less on other things. Maybe if I lived in a house half the size, my mortgage payment would be half as large and my heating and cooling bill would be half as large. Maybe I could even get a reduction in the cost of my property tax and property insurance premium.
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BLAME POE for this mess with Citrizens undercharging 2 plus years only to steal from its holders.
No criminal investigation took place. Something is wrong here?
well, if i remember correctly — insurance companies send the rates they plan and any increases to the state for approval. if a consumer believes that it is too much, then they need to shop around. it does not matter if the ceo makes $26 billion@yr (of course, i wish i could make tha money). the home insurance needs to make sure that it does provide the coverage that you\’ll need for the claim that you might possible file. if you are willing to pay more for the insurance, then you are actually accepting the rates/risk they have set for you. one thing you have to remember is that, insurance is a business too. they want to make some kind of profit despite the catastrophic event sicne they have or should have funds available for that event. so don\’t fault the insurance company on the premiums it takes, but remember that the fault lies w/in the system, whereas the state insurance commissioner allows them to take those rates…
1. The quickest reform is the return insurance to the private sector. The quickest way to lower pricing is let the market place compete for business. No force is quicker to reduce prices than competition. The quickest way to get a non-producing asset is price your product too high. Non-producing assets cannot be tolerated by any business. Lowering the price to compete with the competition corrects the problem.
#2 You cannot compete and overpay anybody.
Adam Smith 101.
I fully agree that to have lower rates, you must remove the state and legislation from the formula. Like another posted comment said, you must have competition in the market. Without competition, carriers get as much exposure as they want and as much rate as they want. With adequate rates, carriers would have to compete to get the share of business that they need to generate enough premium and (hopefully) profit to keep their companies active. They all must have a certain amount of business (premium) to keep their doors open. Without adequate rate and competition, carriers can charge whatever they want.
The rep of the organization against Citizen says the Citizens CEO makes $26 Billion? Nice work if you can get it.
I agree, Citizens should close down and Florida needs to create a free and open market. Let the insurers compete and fight it out. Pricing will quickly cluster around a competitive level. Sure, pricing won\’t ever be as low as costs in a state without hurricane exposure but at least a monopoly power won\’t exist and the government won\’t be able to scare away threats to the monopoly power.
Citizens needs a tool that would notify them when a quote is made through an admitted carrier. What\’s happenning is quotes are being given to potential insured\’s through admitted carriers and the rate is higher than Citizens rate. So the customer goes to another agency and takes the Citizen policy when it\’s designed to be the market of last resort. It just doesn\’t work and the state isn\’t smart enough to figure it out.
It is funny to read this article and try to understand how out of touch the voters are with the insurance situation. It was just noted a few weeks ago that the CEO of Citizens was resigning and his salary was around $200,000 I beleive. Second, much of the 7 hour meeting was focused on dealing with the ire of Citizens. Thank the Lord for Citizens. If it didn\’t exist, where would the bulk of the people get their property insurance? And if they could find it, given the capacity issues in Florida\’s property insurance market, how outrageous would the premium be?
The obvious answer is to create an environment of competition, and to create an environment of capacity which will create the competition.
YADA-YADA-YADA
nothing is going to change anytime soon it will be 3-4 months before any changes could be made under the new state senate and house. Folks we have gotten off cheap for to long and now it is catch up time.
$26 billion- the whole dam industry did not sell that much in Florida last year.
Between the property taxes (set to help only those older citizens in Broward/Dade counties), cost to insure those investments, you will have middle aged, and younger people leaving the state because incomes don\’t off-set the cost of living down here in paradise. This word is loosing it\’s effect to many. North Carolina is becoming the state of choice for many of my wealthier friends to relocate. Something needs to be done to bring back the appeal of living in South Florida.
I live in Wisconsin and feel insurance is too high do to losses associated with tornado, hail and car/deer accidents. Can something be done to subsidize that as well.
Otherwise either myself or others might need to CHOOSE to live elsewhere, or accept the costs associated with our state of choice and learn to spend less on other things. Maybe if I lived in a house half the size, my mortgage payment would be half as large and my heating and cooling bill would be half as large. Maybe I could even get a reduction in the cost of my property tax and property insurance premium.