General Property Issues

The OIR just announced a  “re-launch” of its homeowners rate comparison website penned CHOICES; for, Consumer Home Owners Insurance Comparison Electronic System. Like its predecessor, “Shop & Compare”, CHOICES displays premiums by county for “selected” companies including Citizens, then; ranks them from lowest to highest. Also, like its predecessor, CHOICES may cause even more shoppers to ask “where are my choices?” Or worse…”Why is Citizens my only choice?” [Read more…] about “CHOICES”… new site, old problems.

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!

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?

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