Last week I participated in a panel discussion sponsored by the Sarasota/Bradenton local agents association(s) and attended by nearly 200 insurance-philes, vendors and clients. It was a free for all discussion on what’s wrong with Florida’s property market and how to fix it. [Read more…] about A COMPETITIVE CITIZENS–IT’S TIME FOR A LITTLE PAIN!
This post provides insights and opinions gleaned from yesterday’s “unique” rate hearing for Hartford Insurance of the Midwest. It sheds light on issues not discussed at the hearing or, perhaps, even technically relevant to the rate request. These discussions were brought to mind by the expressed need for the request and the rationale given by the Insurance Consumer Advocates office (ICA) for recommending the denial of the request. It was also noteworthy that there was no mention, in Steve Alexander’s presentation (ICA actuary) or elsewhere, of MGA fees or agents’ commissions. [Read more…] about Consumer Advocate Recommends Denial of Hartford’s Rate…Wait Till You Hear Why!
I just attended the 107th Annual Meeting and Education Symposium of what has to be the best insurance trade association in America. During a time in which others are abandoning the idea of even having a convention, this organization, the one I worked at for 36 years, continues to grow and impress.
With well over 2000 people in attendance and more than 265 booths at its trade show, the FAIA meeting eclipses that of any other insurance group I know of, including most national associations. It’s architect and on-site manager is Cindy Molnar. Her talent as a meeting planner results in a packed house every year. Her smile results in the house always being well lit!
She is at the top of a convention team, assembled by Jeff Grady, a friend and talented trade CEO who has all the tools to prove that FAIA’s success is not a result of luck or just a “sign of the times” but, rather…due to his foresight and acumen as a leader.
I was extremely honored this year to be presented FAIA’s highest honor, the Mitchell Stallings Memorial Award. My long time friend, Alex Soto, conducted the presentation during a ceremony that I attended because I thought I was going to have to make a presentation. I was pleasantly surprised to find out the presentation was just a ruse to get me there. The applause was mostly because the audience found out I was not going to be making a presentation.:)
Here’s an “unsteady” video tape of the proceedings as taken by Kyle Ulrich. I hope everyone enjoys it, and…for the record; I love FAIA and everyone who works there. The American agency system produces the best people you can find anywhere in the world and the best of the best are here in Florida.
Long live the independent agent!
And…thanks to all my friends at FAIA for making my retirement and my career the absolute best anyone could hope for. I will miss you, but will never be far away.
A skirmish between industry representative William Stander, Vice President of the Property and Casualty Insurers Association (PCI) and Robert Trigaux, Business Editor for the St. Pete Times, not only exposes a lack of knowledge about Florida’s property crisis, particularly from Trigaux and the media, but a lack of historical perspective that’s partly responsible for its super natural staying power.
Their exchange was sparked by a recent Quinnipiac poll showing 59% of voters want more regulation of property insurance, while only 29% say the state is already doing enough. Trigaux’s points, however, are testament that the media and perhaps some consumer advocates have forgotten history; in essence complaining about the system that they not only reported on, but likely applauded, when Charlie Crist rammed it down lawmakers throats. It is a system of strict regulation, micro-management and prior approval. It is a system that discards sound underwriting and exposure management, relying instead on accusation, government mandate and trial by media. [Read more…] about MORE REGULATION–How’s It Working Out So Far?
The following letter was received at Johnson Strategies in an email but JS has not verified or confirmed its authenticity with Senator Richters office. Still…it is an accurate critique of Senator Fasanos’ letter to Governor Scott and is reproduced here for that reason.
I recently read Senator Mike Fasano’s op-ed attacking the property insurance reform bill, and I cannot simply watch from the sidelines as a 17-year career politician mischaracterizes and demonizes badly needed public policy reform. There were many false statements surrounding Senate Bill 408 recently published in Tampa and Sarasota-area publications, and I want to follow up by providing factual information regarding this legislation. Let me begin by addressing many of the points Senator Fasano misrepresented.
Frankly, Florida’s ailing property market is the result of many underlying causes. You’re familiar with the list and many of the solutions. Some items are subject to debate, particularly when it comes to priorities, but…conspicuous by its absence is hurricanes. Another season has ended bringing us to the five year mark without a wind event of any kind. Yet, loss frequency is up nearly 30%; severity is up 30%; the average loss per policy is up nearly 70%. The results are that we’ve had more rate increases and insolvencies after five years of no storms than we had after two years in which eight hurricanes ravaged our state.
What happened? Why have the losses for such traditionally profitable perils deteriorated so precipitously, and…only in Florida?
To find the answer we must go back to 2005. [Read more…] about THE REST OF THE STORY
Due mostly to the proliferation and growing problems associated with Public Adjusters (PA’s), lawmakers directed the state Office of Program Policy and Government Analysis (OPPAGA) to study and report findings–which it did on February 1, 2010. OPPAGA was careful to keep judgments and opinions out of its report but, not careful enough to prevent distortions of its conclusions.
One data point attracting both attention and exploitation (by “some” PA’s) misleads consumers to conclude a public adjuster averages 747% more payout on claims–a mistruth advertised by at least one PA as being…”according to a government study“. Here’s the relevant paragraph from OPPAGA’s report:
Let’s face it, Citizens is not only a major employer, it is a major player in Florida’s insurance market and therefore is ripe for review as we look for more private sector jobs. Governor Scott’s 777 Plan features 7 steps to achieve 700,000 jobs over 7 years and cites the following:
“Government run wind insurance has driven private insurers out of the market and will result in an enormous tax increase or auto insurance rate increases if we get hit with a major hurricane or a number of costly hurricanes.”
Insurance is a “clean” industry that doesn’t pollute the atmosphere or consume Florida’s natural resources. Yet, it is a major contributor to Florida’s economy. The latest annual report of the state Office of Insurance Regulation (OIR), contains the following : [Read more…] about Scott’s 777 Plan & Citizens Outsourcing