If an Ins Co goes belly up due to losses it\’s their own fault. Go to MSN money sometime and look for insider trading under any Ins Co symbol and look at what the officers are puttinmg in their pockets that could be put towards the very policy holders they screw.
Take that one and sit on it Not a Public Adjuster!
First off: A reserve, as someone else pointed out, is a reserve against future loss. Once a claim is filed, an insurer puts a reserve up. I would have thought an adjuster of all people would know this.
Secondly: Profits. Sure, insurance companies are out to make money. Sure, they\’ve made more than usual these last few years. However, I would suspect that the rest of the U.S. would not want their premiums to go up so that Floridians can enjoy lower premiums.
Premiums are calculated based on its own risk. That is, florida premiums are based on Florida risk. The rest of the country should not have to pay for Florida.
This is not about greed. It\’s about fair markets. you would not expect GM to continue to manufacture an automobile that doesn\’t sell would you? Would you ask GM to use its profits from other vehicles just to support one money losing auto? No. Why is insurance different? Why do people insist that profitable markets support unprofitable ones?
I don\’t understand this lack of insurance understanding from so called Insurance professionals.
You have to remember that Insurance companies are also subject to stock holders. If a majority stock holder starts to lose money, then that stock holder will either demand that the company change it\’s operations to correct the loss of income or they will pull out their funds out of the company. If the company starts to lose too much stock holder money then they may go bankrupt. Then where would the policy holders be in the case of a loss?
I agree that yes the insurance companies have made money, but you do have to realize that for most of them the profits are coming from NATIONWIDE operations, not just from Florida, Mississippi or Alabama. I suspect that if you look at the amount of premium collected by state to what has been paid out you\’d see that hurricane prone states have probably not been too profitable in the last couple of years for home insurance.
Note also that 2006 was a deviation from what nature has been providing hurricane-wise for the last several years. There were 10 Named storms (5 hurricanes formed well off-shore) and of those only 3 Tropical storms hit the US coast directly. In 2005 there were 28 named storms 15 of them were hurricanes and 6 of those either directly hit or brushed the US coast. The last year (before 2006)that less than 12 storms formed was in 1997. And from 1995 on at least one storm (from tropical depression on up) has hit Florida.
We have updated our privacy policy to be more clear and meet the new requirements of the GDPR. By continuing to use our site, you accept our revised Privacy Policy.
If an Ins Co goes belly up due to losses it\’s their own fault. Go to MSN money sometime and look for insider trading under any Ins Co symbol and look at what the officers are puttinmg in their pockets that could be put towards the very policy holders they screw.
Take that one and sit on it Not a Public Adjuster!
First off: A reserve, as someone else pointed out, is a reserve against future loss. Once a claim is filed, an insurer puts a reserve up. I would have thought an adjuster of all people would know this.
Secondly: Profits. Sure, insurance companies are out to make money. Sure, they\’ve made more than usual these last few years. However, I would suspect that the rest of the U.S. would not want their premiums to go up so that Floridians can enjoy lower premiums.
Premiums are calculated based on its own risk. That is, florida premiums are based on Florida risk. The rest of the country should not have to pay for Florida.
This is not about greed. It\’s about fair markets. you would not expect GM to continue to manufacture an automobile that doesn\’t sell would you? Would you ask GM to use its profits from other vehicles just to support one money losing auto? No. Why is insurance different? Why do people insist that profitable markets support unprofitable ones?
I don\’t understand this lack of insurance understanding from so called Insurance professionals.
Politely my friend.
You have to remember that Insurance companies are also subject to stock holders. If a majority stock holder starts to lose money, then that stock holder will either demand that the company change it\’s operations to correct the loss of income or they will pull out their funds out of the company. If the company starts to lose too much stock holder money then they may go bankrupt. Then where would the policy holders be in the case of a loss?
I agree that yes the insurance companies have made money, but you do have to realize that for most of them the profits are coming from NATIONWIDE operations, not just from Florida, Mississippi or Alabama. I suspect that if you look at the amount of premium collected by state to what has been paid out you\’d see that hurricane prone states have probably not been too profitable in the last couple of years for home insurance.
Note also that 2006 was a deviation from what nature has been providing hurricane-wise for the last several years. There were 10 Named storms (5 hurricanes formed well off-shore) and of those only 3 Tropical storms hit the US coast directly. In 2005 there were 28 named storms 15 of them were hurricanes and 6 of those either directly hit or brushed the US coast. The last year (before 2006)that less than 12 storms formed was in 1997. And from 1995 on at least one storm (from tropical depression on up) has hit Florida.