No, you don\’t understand insurance in any way. Your ignorance of the product, it\’s purpose and how the industry works comes out in every posting. How dare you accuse an industry full of good, decent people doing a job that needs to be done because of your ignorance and jealousy. You have no fact, no basis for anything you have whined about for the length of these postingsl. I am asking you once more to actually learn a little about the industry and people you slander. You won\’t because that would take a little effort. You are a little person, small in mind and thought. Not worth the time of the decent people in my industry.
No Kathy, homeowners coverage is not profitable in Florida. Has not been profitable in the long run for many years. It\’s not if a hurricane will hit, it\’s when it will hit. Just because it doesn\’t hit your house doesn\’t mean a thing. The loss ratio for Florida in Homeowners is terrible. Why should not only Auto policyholders, but Workers Compensation, Commercial Package polcies, and Surety Bonds pay for a line that can\’t be allowed to pay for itself. If insurance companies were so outrageously profitable in Florida why are so many pulling out, including my own company? We don\’t pay massive salaries and bonuses since we are a mutual. You display little knowledge of the actual product. The assessments in a large storm could be up to 74% on policies not in Citizens. Policies of all types. Citizens is a major disaster waiting to happen.
Rates for an individual line of business are set at the state, not countrywide, level. The state of Florida won\’t let a carrier pass through the Kansas tornado losses to Florida insureds. Given this, why do you expect profits from other states to be built into Florida rates? Looking at Florida results on a stand alone basis, homeowners is a money loser over time, and you have no data or basis to refute this.
Rust\’s compensation has next to nothing to do with your insurance premium. SF wrote about 48 billion dollars worth of premium last year. That means about a 25 cents out of every $10,000 of premium went toward Rust\’s compensation.
Second, you\’re trying to use national numbers to justify a regional argument. Apples and Oranges – The industry as a whole made a bundle last year – over every line of insurance across the entire country. The industry as a whole has lost a bundle insuring property in Florida over the last 10 years.
State insurance departments have to approve rates, and Insurers are for-profit entities. If you\’re trying to make a profit, where do you invest? Florida homeowners business has historically been a loser in the long run, and will likely continue to be a loser.
Kathy you make me laugh, maybe anger management might help. Is\’nt insurance like any other business. You focus in on how much companies make nationwide, but look at what companies make on Florida homeowners premuim. They as you look are in the hole, homeowners historically in Florida have not been profitable over the long haul. Why then if your a company stay in Florida, you will continue to see companies pulling out or freezing their books of business. If their is so much money to be made in Florida on homes then why have companies like Allstate and Nationwide not written any for a couple of years. You know and I know if their is money to be made, these companies would be in there writing. P.S. I do care about the people who had troubles getting claims paid but again in the grand scheme of things it was a small minority compared to what was paid out. Do you have faith the state will do any better, many of those that had problems were with Citizens. I know because of the problems some of my students went through to get claims paid.
Correct me if I am wrong…Insurance is a \”RISK\” based business. Why should insurance companies only be allowed to write policies (including auto, life, and annuities) that are mostly \”pure profit\”
Wal-Mart stores are another hugh billion dollar company, do you see them closing stores in rural areas that make less than the BIG ones? NO, and that\’s because overall they make HUGE profits. Now what do you think would happen to Wal-Mart if they increased the costs of their product by 500% in those rural less-profit making stores….YUP they would go out of business there because no one would want to buy from them. That is exactly what is happening to the insurance industry in Florida. Now that people can \”choose\” to go with Citizens it will push more of the over-priced greedy private market insurers out and in doing so Citizens will increase their reserves by not only getting the highest risk areas (which is why it had problems in the past..dumped on by the private market) but having less risk policies…..spreading the risk equals a better and more solid company.
I give up, you understand nothing about the product. Insurance companies do not make massive profit on Homeowners in Florida. If Wal Mart or any company had a product the government forced them to sell at a loss they would close their stores. The Florida Insurance Department doesn\’t allow rates adequate for the homeowners product, therefore companies don\’t want to sell that product at a loss. Why should they? And why should customers buying one product be forced to pay more so that the product you want can be less? Your arguements again have no basis in fact. I am proud of my industry and the service we provide. People such as yourself just don\’t understand how the real world works. Companies sell a product to make a profit. Most companies can sell for whatever price the market will bear. Not insurance companies. Our every move is scrutinized in detail. Not a problem. We can prove our rate charges in detail. Keep bringing up arguements with no basis in fact Kathy. You obviously don\’t care about facts, just feelings.
Kathy\’s idea of spreading the risk, is to make people who live in less risky areas carry more of the premiums that people in high risk areas should themselves carry. You know, \”I am spreading my risk to you, and what\’s wrong with that!\”
bp,
The only reason the companies are pulling out of Florida is because our government has put the breaks on their outrageous increases and they are no longer able to gouge people at will. It\’s just like J Lenno said on the Tonight Show….It use to be called the \”Good Hands\” people and now it\’s just the \”one finger\” people!
YOU WRITE:
P.S. I do care about the people who had troubles getting claims paid but again in the grand scheme of things it was a small minority compared to what was paid out. Do you have faith the state will do any better, many of those that had problems were with Citizens. I know because of the problems some of my students went through to get claims paid
WOW..what a selfish comment! You really show what kind of person you are! As a matter of fact I do believe that Citizens will be there for us because now they will not only have the high risk policies but some lower risk policies also.
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No, you don\’t understand insurance in any way. Your ignorance of the product, it\’s purpose and how the industry works comes out in every posting. How dare you accuse an industry full of good, decent people doing a job that needs to be done because of your ignorance and jealousy. You have no fact, no basis for anything you have whined about for the length of these postingsl. I am asking you once more to actually learn a little about the industry and people you slander. You won\’t because that would take a little effort. You are a little person, small in mind and thought. Not worth the time of the decent people in my industry.
No Kathy, homeowners coverage is not profitable in Florida. Has not been profitable in the long run for many years. It\’s not if a hurricane will hit, it\’s when it will hit. Just because it doesn\’t hit your house doesn\’t mean a thing. The loss ratio for Florida in Homeowners is terrible. Why should not only Auto policyholders, but Workers Compensation, Commercial Package polcies, and Surety Bonds pay for a line that can\’t be allowed to pay for itself. If insurance companies were so outrageously profitable in Florida why are so many pulling out, including my own company? We don\’t pay massive salaries and bonuses since we are a mutual. You display little knowledge of the actual product. The assessments in a large storm could be up to 74% on policies not in Citizens. Policies of all types. Citizens is a major disaster waiting to happen.
Rates for an individual line of business are set at the state, not countrywide, level. The state of Florida won\’t let a carrier pass through the Kansas tornado losses to Florida insureds. Given this, why do you expect profits from other states to be built into Florida rates? Looking at Florida results on a stand alone basis, homeowners is a money loser over time, and you have no data or basis to refute this.
Rust\’s compensation has next to nothing to do with your insurance premium. SF wrote about 48 billion dollars worth of premium last year. That means about a 25 cents out of every $10,000 of premium went toward Rust\’s compensation.
Second, you\’re trying to use national numbers to justify a regional argument. Apples and Oranges – The industry as a whole made a bundle last year – over every line of insurance across the entire country. The industry as a whole has lost a bundle insuring property in Florida over the last 10 years.
State insurance departments have to approve rates, and Insurers are for-profit entities. If you\’re trying to make a profit, where do you invest? Florida homeowners business has historically been a loser in the long run, and will likely continue to be a loser.
Kathy you make me laugh, maybe anger management might help. Is\’nt insurance like any other business. You focus in on how much companies make nationwide, but look at what companies make on Florida homeowners premuim. They as you look are in the hole, homeowners historically in Florida have not been profitable over the long haul. Why then if your a company stay in Florida, you will continue to see companies pulling out or freezing their books of business. If their is so much money to be made in Florida on homes then why have companies like Allstate and Nationwide not written any for a couple of years. You know and I know if their is money to be made, these companies would be in there writing. P.S. I do care about the people who had troubles getting claims paid but again in the grand scheme of things it was a small minority compared to what was paid out. Do you have faith the state will do any better, many of those that had problems were with Citizens. I know because of the problems some of my students went through to get claims paid.
Kathy,
You have made some great points here. i like the system here in Florida.
Karl
Correct me if I am wrong…Insurance is a \”RISK\” based business. Why should insurance companies only be allowed to write policies (including auto, life, and annuities) that are mostly \”pure profit\”
Wal-Mart stores are another hugh billion dollar company, do you see them closing stores in rural areas that make less than the BIG ones? NO, and that\’s because overall they make HUGE profits. Now what do you think would happen to Wal-Mart if they increased the costs of their product by 500% in those rural less-profit making stores….YUP they would go out of business there because no one would want to buy from them. That is exactly what is happening to the insurance industry in Florida. Now that people can \”choose\” to go with Citizens it will push more of the over-priced greedy private market insurers out and in doing so Citizens will increase their reserves by not only getting the highest risk areas (which is why it had problems in the past..dumped on by the private market) but having less risk policies…..spreading the risk equals a better and more solid company.
I give up, you understand nothing about the product. Insurance companies do not make massive profit on Homeowners in Florida. If Wal Mart or any company had a product the government forced them to sell at a loss they would close their stores. The Florida Insurance Department doesn\’t allow rates adequate for the homeowners product, therefore companies don\’t want to sell that product at a loss. Why should they? And why should customers buying one product be forced to pay more so that the product you want can be less? Your arguements again have no basis in fact. I am proud of my industry and the service we provide. People such as yourself just don\’t understand how the real world works. Companies sell a product to make a profit. Most companies can sell for whatever price the market will bear. Not insurance companies. Our every move is scrutinized in detail. Not a problem. We can prove our rate charges in detail. Keep bringing up arguements with no basis in fact Kathy. You obviously don\’t care about facts, just feelings.
Kathy\’s idea of spreading the risk, is to make people who live in less risky areas carry more of the premiums that people in high risk areas should themselves carry. You know, \”I am spreading my risk to you, and what\’s wrong with that!\”
bp,
The only reason the companies are pulling out of Florida is because our government has put the breaks on their outrageous increases and they are no longer able to gouge people at will. It\’s just like J Lenno said on the Tonight Show….It use to be called the \”Good Hands\” people and now it\’s just the \”one finger\” people!
YOU WRITE:
P.S. I do care about the people who had troubles getting claims paid but again in the grand scheme of things it was a small minority compared to what was paid out. Do you have faith the state will do any better, many of those that had problems were with Citizens. I know because of the problems some of my students went through to get claims paid
WOW..what a selfish comment! You really show what kind of person you are! As a matter of fact I do believe that Citizens will be there for us because now they will not only have the high risk policies but some lower risk policies also.