Here we go again! – Non-renewing 27,000 homeowner policies in Florida. Why?
PROFITS OVER people . . .
AARP should re-think their association with The Hartford. In 2006 they had $26.5 billion in revenues. For the full year 2007, net income was up 7 percent over the prior year to $2.9 billion.
The Hartford says, “we want to help insure a secure financial future for its customers.” YEAH RIGHT! Their main concern is the bottom line, PROFITS OVER people. Wake up FLORIDIANS!
Texan, AARP also uses the Hartford in Florida for Auto and HOme. The one guarantee that AARP members have for their homeowners is the Hartford will guarantee to renew their homeowners even if they stop writing business in Florida. It does not however guarantee the rates. So as Hartford pares down their business and losses occur, rates will increase.
I spent 14 years with The Hartford in Commercial Lines, 6 of them being in FL, 3 of these years monitoring wind cap accumulations in the various areas of the Sunshine State. Capacity is a big deal for insurance companies that want to remain solvent. Had Andrew hit a little further north…The Hartford and many other insurers may have become insolvent. I saw every C/L claim notice $10K and larger. The Hartford remains the “class act” of the property and casualty insurance industry. Also, I have my HO and Auto coverages through the AARP program.
As a Hartford Agent, we have been advised that our agency contract will be cancelled by the end of 2008. All agents whose Hartford book includes over 30% of their total book in Florida will be cancelled. The national agencies as Brown & Brown, Marsh McClellan, Arthur Gallagher etc will keep Hartford as long as their book in FL is less tha 30% of total. Hartford will keep AARP and allow them to write in Florida with the same guidelines above. (I have heard different % of book, but our marketing rep said 30%). So while not actually abandoning the State of Florida they have effectively limited their exposure. I doubt the Florida Legislators will comprehend or even understand this move. After 38 years if insurance in this state, I no longer have any faith in the Florida legislature, especially the insurance committee.
Cletus is correct, companies do have to take a prudent look at their exposure and capacity. Florida is no longer just a serverity issue state, it is now a loss frequency issue state. Eight hurricanes hit Florida in two years, reinsurers are having issues with that.
As for hurricane Andrew, other insurance companies adopted the Hartford model to determine their potential losses given a CAT storm. At the time of Andrew, a company like State Farm had no idea what their potential loss would have been until they used the Hartford polciy tracking model. Andrew hits 25 miles north, there would have been plenty of insurers who would not be here today. So it’s not just profits over people, it’s a matter of Solvency as well. Private companies have this terrible addiction to staying in business and being profitable and retain their thousands of employees, who are residents of Florida, consumers and taxpayers. Unfortunately, government is so out of control at all levels, that they forgot that principal of business. They just continue to spend and come up with ridiculous schemes/plans/policies often times just to get elected. So elected officicals in Florida will continue to demonize the insurance industry and throw solvency out the window to give the appearance they care.
Profits over people? The insurance companies are ‘FOR PROFIT ENTITIES’! They are in business to make a profit in our capitalist system. They are not extensions of the government! They are not in business for the benefit of the people – only for the benefit of their stockholders! Why is that so hard for people to understand?! If you don’t like it, or feel they’re gouging you – SELF INSURE! That way, the big, bad, money hungry insurance companies won’t get your $!
I called The Hartford about transfering my HO & Auto to the AARP program, and was told that they knew nothing about The Hartford terminating my HO. They also told me that they were not interested in writing additional HO in the AARP program.
So my 90 Year Old Mother-in-Law’s condo in Naples is currrently insured with Hartford thru Brown & Brown. Would it make sense to move to AARP now, if they’ll have her?
Long Distance – if you can get her condo insured with AARP, there is a guarantee renewal in the contract. Otherwise, since she is with Brown & Brown (agency written) she could be a casualty of Hartford thinning their book.
Hartford has announced they will start non-renewing agency business if that agency’s book has greater than 25% with the Hartford, effective 1/1/09. That does include Brown and Brown, Marsh and Arthur J. Gallagher.
David said “After 38 years if insurance in this state, I no longer have any faith in the Florida legislature, especially the insurance committee.”
Make sure you specify the “Senate” insurance committee. The House committee has it pretty well figured out, but the Senate has it’s way of having it’s way with the House. Guys like Don Brown and Dennis Ross voted against all the garbage last year. Those R’s along with D Janet Long understand this industry and are working against the Senate and the Governor to try to fix it. Won’t happen this year though… too late for many folks that will get dropped. I doubt this problem will turn around until the Gov’s seat turns around.
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Here we go again! – Non-renewing 27,000 homeowner policies in Florida. Why?
PROFITS OVER people . . .
AARP should re-think their association with The Hartford. In 2006 they had $26.5 billion in revenues. For the full year 2007, net income was up 7 percent over the prior year to $2.9 billion.
The Hartford says, “we want to help insure a secure financial future for its customers.” YEAH RIGHT! Their main concern is the bottom line, PROFITS OVER people. Wake up FLORIDIANS!
Texan, AARP also uses the Hartford in Florida for Auto and HOme. The one guarantee that AARP members have for their homeowners is the Hartford will guarantee to renew their homeowners even if they stop writing business in Florida. It does not however guarantee the rates. So as Hartford pares down their business and losses occur, rates will increase.
I spent 14 years with The Hartford in Commercial Lines, 6 of them being in FL, 3 of these years monitoring wind cap accumulations in the various areas of the Sunshine State. Capacity is a big deal for insurance companies that want to remain solvent. Had Andrew hit a little further north…The Hartford and many other insurers may have become insolvent. I saw every C/L claim notice $10K and larger. The Hartford remains the “class act” of the property and casualty insurance industry. Also, I have my HO and Auto coverages through the AARP program.
As a Hartford Agent, we have been advised that our agency contract will be cancelled by the end of 2008. All agents whose Hartford book includes over 30% of their total book in Florida will be cancelled. The national agencies as Brown & Brown, Marsh McClellan, Arthur Gallagher etc will keep Hartford as long as their book in FL is less tha 30% of total. Hartford will keep AARP and allow them to write in Florida with the same guidelines above. (I have heard different % of book, but our marketing rep said 30%). So while not actually abandoning the State of Florida they have effectively limited their exposure. I doubt the Florida Legislators will comprehend or even understand this move. After 38 years if insurance in this state, I no longer have any faith in the Florida legislature, especially the insurance committee.
Cletus is correct, companies do have to take a prudent look at their exposure and capacity. Florida is no longer just a serverity issue state, it is now a loss frequency issue state. Eight hurricanes hit Florida in two years, reinsurers are having issues with that.
As for hurricane Andrew, other insurance companies adopted the Hartford model to determine their potential losses given a CAT storm. At the time of Andrew, a company like State Farm had no idea what their potential loss would have been until they used the Hartford polciy tracking model. Andrew hits 25 miles north, there would have been plenty of insurers who would not be here today. So it’s not just profits over people, it’s a matter of Solvency as well. Private companies have this terrible addiction to staying in business and being profitable and retain their thousands of employees, who are residents of Florida, consumers and taxpayers. Unfortunately, government is so out of control at all levels, that they forgot that principal of business. They just continue to spend and come up with ridiculous schemes/plans/policies often times just to get elected. So elected officicals in Florida will continue to demonize the insurance industry and throw solvency out the window to give the appearance they care.
Profits over people? The insurance companies are ‘FOR PROFIT ENTITIES’! They are in business to make a profit in our capitalist system. They are not extensions of the government! They are not in business for the benefit of the people – only for the benefit of their stockholders! Why is that so hard for people to understand?! If you don’t like it, or feel they’re gouging you – SELF INSURE! That way, the big, bad, money hungry insurance companies won’t get your $!
I called The Hartford about transfering my HO & Auto to the AARP program, and was told that they knew nothing about The Hartford terminating my HO. They also told me that they were not interested in writing additional HO in the AARP program.
So my 90 Year Old Mother-in-Law’s condo in Naples is currrently insured with Hartford thru Brown & Brown. Would it make sense to move to AARP now, if they’ll have her?
Long Distance – if you can get her condo insured with AARP, there is a guarantee renewal in the contract. Otherwise, since she is with Brown & Brown (agency written) she could be a casualty of Hartford thinning their book.
Hartford has announced they will start non-renewing agency business if that agency’s book has greater than 25% with the Hartford, effective 1/1/09. That does include Brown and Brown, Marsh and Arthur J. Gallagher.
David said “After 38 years if insurance in this state, I no longer have any faith in the Florida legislature, especially the insurance committee.”
Make sure you specify the “Senate” insurance committee. The House committee has it pretty well figured out, but the Senate has it’s way of having it’s way with the House. Guys like Don Brown and Dennis Ross voted against all the garbage last year. Those R’s along with D Janet Long understand this industry and are working against the Senate and the Governor to try to fix it. Won’t happen this year though… too late for many folks that will get dropped. I doubt this problem will turn around until the Gov’s seat turns around.