NO, and no one is saying that companies shouldn’t make a profit. But try explaining to a client why their policy is being non-renenwed after 15 years with the same company and NO LOSSES. Try explaining that this “storm” is coming. The same storm that’s been coming for years. The same one they’ve been through and never reported a loss and OH well, too bad. It’s not just State Farm. A lot of the companies are doing it but that doesn’t make it right.
Learn a little about insurance and then you will be able to explain the ocncept. If someone hasn’t had a claim, they probably have a claim free discount.
Better be careful what you ask for, you might get it. State Farm would love to pull out of Florida; that’s like dropping your loss-leader. Why can’t Floridians just let companies compete, except that everyone knows that the rates are artificially depressed….just imagine the premiums if there were no backstop, no CITIZENS, no FEMA, no SBA loans….you can bet that the real estate market would go soft, like it was in the 30’s. Half of Florida is below sea level and all of it is too near the coast…why should the rest of the country subsidize their rates? If state farm withdrew, the market would TANK! That’s reality, not some political “puff of smoke”…
The claim free discount is hardly the issue if they’re being non-renewed genius. Especially when finding another company who is not doing the same exact thing is like pulling teeth.
I’m seeing this happen to people all over the country. FL is not the only issue here. It’s even more dissapointing when other agents can’t understand why people to don’t trust us. Gee, I can’t imagine.
As far as explaining the concept. I can explain it fine. It still doesn’t make sense to the person getting SCR##WED.
Everyone seems to forget that their 401Ks are vested in mutual funds. Everyone wants their fund to make money. Everyone wants a return on investment but when the price of gas goes up becuase of speculation in oil-future, no one seems to appreciate where the profits come from; same with insurance stocks; the need for profit is OK as long as you’re making money….nothing is free, the cost of insuring losses has to be borne by someone….oh, I forgot NIMBY; not in my back yard means NIMP (not in my portfolio…)
I want to point this out because everyone dogged Allstate about doing the same thing:
Where is the new market State Farm is brining into Florida to take over these policies? That’s right, there isn’t one.
Allstate has given their agents new companies to accomodate non-renewals. State Farm is sending them all to Citizens probably. That really helps the market, doesn’t it?
all homeowners across America subsidize Floridians exposure to risk? As stated before, my clients want to pay the expense associated with their risk for the place they choose to live. So State Farm decides in the best interest of the mutual policyholder base that five percent of homes will be NONRENEWED, not cancelled. If they could collect the right amount of premium for the risk, they would not have taken steps that pretty much guarantee not only the loss of fire premium but also the other business that goes with those homes. Hey Florida agent – rejoice at now having 50,000 more homes to insure. I hope thats enough to offset the increased taxes you’ll pay there since your elected officials have signed up to provide government insurance at a huge loss.
Artificially suppressing insurance rates to placate the populace always leads to the same end – catastrophic rate increases. But I guess the governer and the populace will get what they pay for.
Didn’t the Governor and his cronies also issue inflammatory public statements about kicking insurers out of the state and comments like “don’t let the screen door hit you on the way out”, etc.
But, when companies actually do try to reduce they’re already-underpriced exposure, the same crowd goes ballistic?
Moron #1 Governor Charlie Crist
Moron #2 Ins Comm Kevin Mccarty
Moron #3 Every one that thought things would get better by electing Crist.
50,000 policies is not even worth talking about, it is among the lowest number of non renewals processed by a reasonable sized carrier in 3 years. Sure it is hard to swallow for those that are affected, but it is a drop in the bucket. Now you want pain for everyone? let Snake farm withdraw from Florida completely. This will raise EVERYONES rates by 25% or more because there is NOT enough capacity with all the other carriers combined to handle the huge onslaught on policies if that happens. Citizens will go up life a puff of smoke and never be able to handle that exposure, the assessments would drive most carriers in to bankruptcy just after the homeowners got out of that line. I can’t stand State Farm because they manipulate the system, their agents think they are working with a good company because they do not know any better. Many of their agents are now opening independent agencies under their wives names because they do see the other side. But folks this is not a State Farm issue, this is a Florida regulation issue. State Farm is not making money off of anyone by dropping 50,000 customers, they are being responsible and taking care of the ones they have left by assuring adequate reserves and premiums are available to cover losses. Profit is not a bad word. We need more competition to make things better not less. But then why would any company WANT to come to Florida with the political crap we have here now, and I am a republican, a very disgusted republican.
Don’t be upset because your company drops you, be upset that they did not raise your rates 3 to 5 percent a year to stay ahead of this mess, instead they now need 75 to 150% increases which will not happen.
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NO, and no one is saying that companies shouldn’t make a profit. But try explaining to a client why their policy is being non-renenwed after 15 years with the same company and NO LOSSES. Try explaining that this “storm” is coming. The same storm that’s been coming for years. The same one they’ve been through and never reported a loss and OH well, too bad. It’s not just State Farm. A lot of the companies are doing it but that doesn’t make it right.
Learn a little about insurance and then you will be able to explain the ocncept. If someone hasn’t had a claim, they probably have a claim free discount.
Better be careful what you ask for, you might get it. State Farm would love to pull out of Florida; that’s like dropping your loss-leader. Why can’t Floridians just let companies compete, except that everyone knows that the rates are artificially depressed….just imagine the premiums if there were no backstop, no CITIZENS, no FEMA, no SBA loans….you can bet that the real estate market would go soft, like it was in the 30’s. Half of Florida is below sea level and all of it is too near the coast…why should the rest of the country subsidize their rates? If state farm withdrew, the market would TANK! That’s reality, not some political “puff of smoke”…
The claim free discount is hardly the issue if they’re being non-renewed genius. Especially when finding another company who is not doing the same exact thing is like pulling teeth.
I’m seeing this happen to people all over the country. FL is not the only issue here. It’s even more dissapointing when other agents can’t understand why people to don’t trust us. Gee, I can’t imagine.
As far as explaining the concept. I can explain it fine. It still doesn’t make sense to the person getting SCR##WED.
Everyone seems to forget that their 401Ks are vested in mutual funds. Everyone wants their fund to make money. Everyone wants a return on investment but when the price of gas goes up becuase of speculation in oil-future, no one seems to appreciate where the profits come from; same with insurance stocks; the need for profit is OK as long as you’re making money….nothing is free, the cost of insuring losses has to be borne by someone….oh, I forgot NIMBY; not in my back yard means NIMP (not in my portfolio…)
I want to point this out because everyone dogged Allstate about doing the same thing:
Where is the new market State Farm is brining into Florida to take over these policies? That’s right, there isn’t one.
Allstate has given their agents new companies to accomodate non-renewals. State Farm is sending them all to Citizens probably. That really helps the market, doesn’t it?
Just an observation.
and left
all homeowners across America subsidize Floridians exposure to risk? As stated before, my clients want to pay the expense associated with their risk for the place they choose to live. So State Farm decides in the best interest of the mutual policyholder base that five percent of homes will be NONRENEWED, not cancelled. If they could collect the right amount of premium for the risk, they would not have taken steps that pretty much guarantee not only the loss of fire premium but also the other business that goes with those homes. Hey Florida agent – rejoice at now having 50,000 more homes to insure. I hope thats enough to offset the increased taxes you’ll pay there since your elected officials have signed up to provide government insurance at a huge loss.
Artificially suppressing insurance rates to placate the populace always leads to the same end – catastrophic rate increases. But I guess the governer and the populace will get what they pay for.
Didn’t the Governor and his cronies also issue inflammatory public statements about kicking insurers out of the state and comments like “don’t let the screen door hit you on the way out”, etc.
But, when companies actually do try to reduce they’re already-underpriced exposure, the same crowd goes ballistic?
What a bunch of morons.
Moron #1 Governor Charlie Crist
Moron #2 Ins Comm Kevin Mccarty
Moron #3 Every one that thought things would get better by electing Crist.
50,000 policies is not even worth talking about, it is among the lowest number of non renewals processed by a reasonable sized carrier in 3 years. Sure it is hard to swallow for those that are affected, but it is a drop in the bucket. Now you want pain for everyone? let Snake farm withdraw from Florida completely. This will raise EVERYONES rates by 25% or more because there is NOT enough capacity with all the other carriers combined to handle the huge onslaught on policies if that happens. Citizens will go up life a puff of smoke and never be able to handle that exposure, the assessments would drive most carriers in to bankruptcy just after the homeowners got out of that line. I can’t stand State Farm because they manipulate the system, their agents think they are working with a good company because they do not know any better. Many of their agents are now opening independent agencies under their wives names because they do see the other side. But folks this is not a State Farm issue, this is a Florida regulation issue. State Farm is not making money off of anyone by dropping 50,000 customers, they are being responsible and taking care of the ones they have left by assuring adequate reserves and premiums are available to cover losses. Profit is not a bad word. We need more competition to make things better not less. But then why would any company WANT to come to Florida with the political crap we have here now, and I am a republican, a very disgusted republican.
Don’t be upset because your company drops you, be upset that they did not raise your rates 3 to 5 percent a year to stay ahead of this mess, instead they now need 75 to 150% increases which will not happen.