With last month’s news that GEICO is now spending nearly $1 billion on advertising, I’m reminded of the regulatory emphasis previously placed on how much Florida domestic property writers were spending to acquire policyholders and thus…the relationship between advertising expense and agents’ commissions. [Read more…] about Agents vs. the $1-Billion Lizard
Archives for 2012
ObamaCare–A LEGAL TAX!
As you likely know, a majority of the states, including Florida, and numerous organizations and individual persons, had filed actions in federal court challenging the constitutionality of some or all of the elements of Obama’s Patient Protection and Affordable Care Act (PPACA). This morning the U.S Supreme Court made clear that the individual mandate in the law and thus the law itself, is a constitutional TAX. (See NOTE #1 Below) [Read more…] about ObamaCare–A LEGAL TAX!
A Statewide Wind Pool…the game of Whack-a-mole!
Like a game of Whack-a-mole, every time the ugly head of a statewide wind pool rears, it gets “whacked” back in its hole.
Rejection comes in several forms, usually that the state of Florida (and thus Floridians) should not be on the hook for “all” wind exposure. None the less…
…as policymakers and others attempt to address persistent problems with Citizens and the even more persistent political challenges to fixing those problems, the concept of a statewide wind pool has proven buoyant enough to surface again and again!
I swear I had nothing to do with the recent move and offer what’s here for educational purposes only. [Read more…] about A Statewide Wind Pool…the game of Whack-a-mole!
“A” or “F”…Where Would You Put Your Money?
One hears a lot of talk about bringing “needed capital” to the sunshine state. Such talk usually includes broad agreement on why some carriers left in the first place and even what’s needed to bring some of them back.
There’s also agreement that Florida cannot internalize its huge coastal exposure while at the same time quenching the political thirst to keep premiums in check. [Read more…] about “A” or “F”…Where Would You Put Your Money?
CITIZENS… Taxation Without Representation & FOUITFWCR!
After the recent Citizens Depopulation Summit an industry lobbyist asked me, “Where’s the other side? Why aren’t we hearing from the majority of Florida’s 15 million residents paying higher taxes so that a mere 1.5 million can pay less than they should for insurance?”
A serious question that deserves a serious response, which I will now give! [Read more…] about CITIZENS… Taxation Without Representation & FOUITFWCR!
Citizens Depopulation & “Churning”!
No telling what idea’s might bob to the surface during this Friday’s depopulation summit in Tampa. (See NOTE #1 below for details).
Sponsored by Citizens Depopulation Committee and open to all comers, it’s a wide open idea exchange likely to produce some real “doozies”, which is fine, but…it’s also likely to feature a disproportionate emphasis on takeout ideas both new and old, and..that’s not so fine! [Read more…] about Citizens Depopulation & “Churning”!
Citizens Rates–One Good Punt Deserves Another!
The statutes are replete with opportunities for the Citizens board to reduce policy count and exposure.
One presumes this to be intentional since lawmakers would not even take up recent Citizens bills. Essentially, along with existing statutes that allow them to be made, the legislature “punted” unpopular decisions to the Citizens board of governors–some privately admit as much. [Read more…] about Citizens Rates–One Good Punt Deserves Another!
Peoples Trust Complaint Ratio
The ink was still wet when I began hearing from agents, and others, on my post about changes at Peoples Trust. It seems that, according to the OIR’s most recent report, the Complaint Ratio for Peoples (5.44) is worse than any other carrier, including Citizens (1.0234). [Read more…] about Peoples Trust Complaint Ratio
NEW PA RULES…Where’s The Industry?!
Please…those in the industry who are engaged in all issues dealing with public adjusters, forgive my lumping you in with those who appear not to be.
Such lumping is unavoidable and unintentional!
But…it is important that insurers and insurer groups give greater attention to the heightened campaign by PA’s to represent literally everyone who files a claim–regardless of need. [Read more…] about NEW PA RULES…Where’s The Industry?!
CITIZENS COMMISSIONS…Rebuttal of the “Yeah, but’s…”
Inevitably, after publishing a report on Citizens producer commissions, I get “amen’s” from one corner and “yeah, but’s…” from the other.
Here I’ll address the latter. [Read more…] about CITIZENS COMMISSIONS…Rebuttal of the “Yeah, but’s…”