Are we sure this is the way to go? We should lower the required reserves to entice more players in the CA comp market? Isnt that inviting the Legions, Cal Comps and Fremonts of the world to dip their toes in the water by low balling rates in order to collect premiums only to wind up filing BK a few years later? Just a thought…
I think this legislator has a grand plan! Why not lower requirements for losses and associated expenses so the carriers can write more business. Let the carriers weaken their reserves because admitted carriers whom might become insolvent and their claimants ARE protected by CIGA, right? Every knows that there is a problem with WC capacity in CA, right?
I would have to agree that increasing capacity would only allow more risk in the market. This is akin to the mortgages that had been written. Increasing capacity by lowering the standards would spell trouble if the market suddenly hardens.
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Are we sure this is the way to go? We should lower the required reserves to entice more players in the CA comp market? Isnt that inviting the Legions, Cal Comps and Fremonts of the world to dip their toes in the water by low balling rates in order to collect premiums only to wind up filing BK a few years later? Just a thought…
I think this legislator has a grand plan! Why not lower requirements for losses and associated expenses so the carriers can write more business. Let the carriers weaken their reserves because admitted carriers whom might become insolvent and their claimants ARE protected by CIGA, right? Every knows that there is a problem with WC capacity in CA, right?
I would have to agree that increasing capacity would only allow more risk in the market. This is akin to the mortgages that had been written. Increasing capacity by lowering the standards would spell trouble if the market suddenly hardens.
This is great. I am a broker and all about making money. Bring on the hard market.