Well stated TBM! But if politics are removed and a change that makes a difference is made – what will that change be? It sure looks like Florida wind risk is inexorably moving to public sector facilitation and administration. Lots of changes can be made on the claim payment and claim settlement end of the equation to reduce costs, but that doesn\’t affect the here and now, only the aftermath of future wind events.
I don\’t forsee a grand, sweeping reform occuring in policy writing, underwriting and rate management other than the politically motivated Citizens\’ rate freeze/reduction and an increased state presence in the wind risk marketplace.
You make sense Florida Retail Agent. The more I\’ve read about this problem, the more convinced I am that the State must become the windstorm insurer. Then, the private insurers could get back to writing regular homeowner\’s insurance, which they know and are good at.
What is this crap, every insurance company raised rates, now the state wants to freeze rates for all citizens policy holders.I am fine with that , but the state should not require the other carriers to slap a 9 to 15% hit on their policies in order to pay for Citizens claims, they need charge the correct rates to cover their losses.THIS IS POLITICAL BULL—-. Here we go, LETS KEEP THE BULL—- FLOWING.
Along with this bill the legislature of Florida has ordered that no more Hurricanes hit the Florida coast. The have decreed that storms may hit other areas but all no Hurricane landings are allowed in Florida for the forseeable future.
One comment attributed to the new governor was: \”Let\’s face it, we\’re in the insurance business\” – obviously referring to the State of Florida.
Okay, more power to you – but let\’s be sure Citizens is subject to the same financial regulation, same federal income tax liability, no assessment safety net, etc. Put Citizens on a level playing field, and see just how quickly these clearly inadequate rates drive it under.
I\’m sorry, but if you want to live in a million dollar beach front home, why should the rest of the state subsidize that decision? Likewise on the federal catastrophe fund idea – you don\’t hear Midwesterners whining about tornado\’s, do you? Or, the high cost of home heating during the winter?
Many Floridians have developed the ability to remove the entire emotion of shame from their behavioral realm.
They feel totally comfortable in asking every other US citizen to subsidize their
ridiculous decision to build on a giant sandbar that is subject to a natural cleansing every now and then.
It has somehow become a US problem that they can\’t let the free market price their product where it needs to be to break even or make a profit. Instead just set up a federal fund so that everyone can pay some of their premium.
Takes a lot of unmitigated gall but thats kind of the makeup of the whole state. After all what would the rest of the US do without all of the products the state produces. I, myself could never function without oranges, citrus, aligator nuggets, disneyworld and beach front condos.
If these clowns want others to pay for there insurance then offshore drilling woudld more than offset some of the cost of this subsidization.
It\’s not the beachfront millionaire with the insurance problem. He can afford the 600% increase in premium. It\’s the $100,000 home owner that can\’t put up $5000 for his insurance that used to cost $800. Fixed income retirees are being forced out of their condos that aren\’t anywhere near the beach. Let the State expand the Windpool statewide and spread the risk to the entire State of Florida. That way, the insurance market can stabilize while ceding the wind risk to the State. Once the (other than wind) risk can be managed by the marketplace, insurers will return and write competitively priced home insurance. With the entire state writing the wind risk in the State Pool, the rates would have to be lower just due to the law of large numbers. Plus, no one would care if the State windpool was \”underfunded\” or didn\’t carry adequate reserves, so long as it has a mechanism to pay catastrophy claims without going back to the insurance buying public (like bond issuance etc…) Look at California\’s management of the earthquake risk for an example. It\’s a win-win because the insurance industry can return without the threat of financial ruin due to the \”big one\” that hasn\’t hit yet.
Let\’s see. We will keep Citizens rates the same so the private market will have rates higher than Citizens. This will cause Citizens to grow larger.The private market will stop writing because it can\’t get adequate rates.
Now a Hurricane or two hits and Citizens goes bankrupt again. We can surcharge the private market again and double the Citizens rate so it can become solvent again. The public will have even more difficulty finding a private market insuror and the property insurance crisis will become unmanagable. Brillant.
Maybe these guys could settle the Iraq War while they are at it. I am sure they could have us out of there by… say… 2050.
These \”solutions\” are plain stupid. They need to take the politics out of it and do something that would really make a difference.
Ok, so the general consensus is that everyone that can\’t afford prop insurance in FL to move out or simply not carry it, right? And where should these people move? I mean, I\’m just curious. We don\’t have any natural disasters here in AZ, so maybe FL can just move to AZ, and we can leave FL vacant. I mean, come on, think about what you\’re saying here. It\’s not like everyone in FL is mad because the insurance on their Hummer\’s is going up. You people are acting like living in FL is some sort of luxury good like a sports car or a boat. So when the property rate hits $ 75 per $ 100, and the people have to move out, where should they go. Let me know. No, really, let me know. I\’m curious.
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Well stated TBM! But if politics are removed and a change that makes a difference is made – what will that change be? It sure looks like Florida wind risk is inexorably moving to public sector facilitation and administration. Lots of changes can be made on the claim payment and claim settlement end of the equation to reduce costs, but that doesn\’t affect the here and now, only the aftermath of future wind events.
I don\’t forsee a grand, sweeping reform occuring in policy writing, underwriting and rate management other than the politically motivated Citizens\’ rate freeze/reduction and an increased state presence in the wind risk marketplace.
You make sense Florida Retail Agent. The more I\’ve read about this problem, the more convinced I am that the State must become the windstorm insurer. Then, the private insurers could get back to writing regular homeowner\’s insurance, which they know and are good at.
You need to head up to Tallahassee.
What is this crap, every insurance company raised rates, now the state wants to freeze rates for all citizens policy holders.I am fine with that , but the state should not require the other carriers to slap a 9 to 15% hit on their policies in order to pay for Citizens claims, they need charge the correct rates to cover their losses.THIS IS POLITICAL BULL—-. Here we go, LETS KEEP THE BULL—- FLOWING.
Along with this bill the legislature of Florida has ordered that no more Hurricanes hit the Florida coast. The have decreed that storms may hit other areas but all no Hurricane landings are allowed in Florida for the forseeable future.
One comment attributed to the new governor was: \”Let\’s face it, we\’re in the insurance business\” – obviously referring to the State of Florida.
Okay, more power to you – but let\’s be sure Citizens is subject to the same financial regulation, same federal income tax liability, no assessment safety net, etc. Put Citizens on a level playing field, and see just how quickly these clearly inadequate rates drive it under.
I\’m sorry, but if you want to live in a million dollar beach front home, why should the rest of the state subsidize that decision? Likewise on the federal catastrophe fund idea – you don\’t hear Midwesterners whining about tornado\’s, do you? Or, the high cost of home heating during the winter?
Many Floridians have developed the ability to remove the entire emotion of shame from their behavioral realm.
They feel totally comfortable in asking every other US citizen to subsidize their
ridiculous decision to build on a giant sandbar that is subject to a natural cleansing every now and then.
It has somehow become a US problem that they can\’t let the free market price their product where it needs to be to break even or make a profit. Instead just set up a federal fund so that everyone can pay some of their premium.
Takes a lot of unmitigated gall but thats kind of the makeup of the whole state. After all what would the rest of the US do without all of the products the state produces. I, myself could never function without oranges, citrus, aligator nuggets, disneyworld and beach front condos.
If these clowns want others to pay for there insurance then offshore drilling woudld more than offset some of the cost of this subsidization.
It\’s not the beachfront millionaire with the insurance problem. He can afford the 600% increase in premium. It\’s the $100,000 home owner that can\’t put up $5000 for his insurance that used to cost $800. Fixed income retirees are being forced out of their condos that aren\’t anywhere near the beach. Let the State expand the Windpool statewide and spread the risk to the entire State of Florida. That way, the insurance market can stabilize while ceding the wind risk to the State. Once the (other than wind) risk can be managed by the marketplace, insurers will return and write competitively priced home insurance. With the entire state writing the wind risk in the State Pool, the rates would have to be lower just due to the law of large numbers. Plus, no one would care if the State windpool was \”underfunded\” or didn\’t carry adequate reserves, so long as it has a mechanism to pay catastrophy claims without going back to the insurance buying public (like bond issuance etc…) Look at California\’s management of the earthquake risk for an example. It\’s a win-win because the insurance industry can return without the threat of financial ruin due to the \”big one\” that hasn\’t hit yet.
Let\’s see. We will keep Citizens rates the same so the private market will have rates higher than Citizens. This will cause Citizens to grow larger.The private market will stop writing because it can\’t get adequate rates.
Now a Hurricane or two hits and Citizens goes bankrupt again. We can surcharge the private market again and double the Citizens rate so it can become solvent again. The public will have even more difficulty finding a private market insuror and the property insurance crisis will become unmanagable. Brillant.
Maybe these guys could settle the Iraq War while they are at it. I am sure they could have us out of there by… say… 2050.
These \”solutions\” are plain stupid. They need to take the politics out of it and do something that would really make a difference.
This makes total sense. Have the free market collapse and then Florida can have the federal government step in.
That way the rest of the US gets to pay so that Florida Insureds don\’t pay what they would if the free marketplace priced this product.
Great political solution for Florida. Sucker deal for the 49 other states.
Ok, so the general consensus is that everyone that can\’t afford prop insurance in FL to move out or simply not carry it, right? And where should these people move? I mean, I\’m just curious. We don\’t have any natural disasters here in AZ, so maybe FL can just move to AZ, and we can leave FL vacant. I mean, come on, think about what you\’re saying here. It\’s not like everyone in FL is mad because the insurance on their Hummer\’s is going up. You people are acting like living in FL is some sort of luxury good like a sports car or a boat. So when the property rate hits $ 75 per $ 100, and the people have to move out, where should they go. Let me know. No, really, let me know. I\’m curious.