Actuarial Outpost
 
Go Back   Actuarial Outpost > Actuarial Discussion Forum > Property - Casualty / General Insurance
FlashChat Actuarial Discussion Preliminary Exams CAS/SOA Exams Cyberchat Around the World Suggestions


Upload your resume securely at https://www.dwsimpson.com
to be contacted when new jobs meet your skills and objectives.


Reply
 
Thread Tools Display Modes
  #21  
Old 06-27-2007, 08:51 AM
Westley Westley is offline
Member
 
Join Date: Nov 2001
Posts: 26,224
Default

Quote:
Originally Posted by MountainHawk View Post
I think it would be much more controversial if it were to happen in NOLA again though. How many lessons does Florida need before they deal with the problem?
I think you are much more sophisticated in how you think of these things than the average voter, or even the average politician.

Not to turn this political, but, won't somebody PLEASE think of the CHIIIILLLLDREN!?!?!?

It's all well and good to say that Florida should do something, it's different when you have people on tv every night talking about the devestation and how horrible it is to have to deal with this, and you know that it wasn't his choice to be uninsured, it was Crist's.
Reply With Quote
  #22  
Old 06-27-2007, 08:55 AM
MountainHawk's Avatar
MountainHawk MountainHawk is offline
Member
CAS AAA
 
Join Date: Dec 2001
Location: Salem, MA
Studying for Nothing!!!!
College: Lehigh University Alum
Favorite beer: Yuengling
Posts: 64,850
Default

Quote:
Originally Posted by Westley View Post
I think you are much more sophisticated in how you think of these things than the average voter, or even the average politician.

Not to turn this political, but, won't somebody PLEASE think of the CHIIIILLLLDREN!?!?!?

It's all well and good to say that Florida should do something, it's different when you have people on tv every night talking about the devestation and how horrible it is to have to deal with this, and you know that it wasn't his choice to be uninsured, it was Crist's.
Maybe you are right, but there were a fair number of 'average voters' writing to papers asking why we were repaying to rebuild in a spot that is just going to flood again.
__________________

Play in the AO Prediction Game now!



1
Reply With Quote
  #23  
Old 07-08-2007, 04:54 PM
silverfox's Avatar
silverfox silverfox is offline
Member
CAS SOA COPA
 
Join Date: May 2005
Favorite beer: Westmalle Tripel
Posts: 14,832
Default

I was hoping this thread would be related to how much take-out credits you could apply for. I'm not sure whether it's still property only or if you can also apply it to other lines now that all lines are fair game for surcharges.
__________________
Reply With Quote
  #24  
Old 07-08-2007, 04:57 PM
silverfox's Avatar
silverfox silverfox is offline
Member
CAS SOA COPA
 
Join Date: May 2005
Favorite beer: Westmalle Tripel
Posts: 14,832
Default

Quote:
Originally Posted by Frenchie View Post
I wandered off in thought and got mad all over again at FL cutting property taxes by taking $2 billion from education! Sorry, I digress...and I don't think my post was at all helpful.
Is that related to how Florida is a big state where people go to retire and the elderly vote in disproportionate numbers?
__________________
Reply With Quote
  #25  
Old 07-16-2007, 12:01 PM
ShebaPoe ShebaPoe is offline
Member
 
Join Date: Nov 2005
Location: NY / Palm Beach
Posts: 34,396
Default

Quote:
Originally Posted by silverfox View Post
Is that related to how Florida is a big state where people go to retire and the elderly vote in disproportionate numbers?
Actually, no.

It is related to recent explosions in new construction and increasing demand for municipal services causing property taxes to go up. The real estate boom - especially new construction - was quite pronounced in Florida, and property tax assessors took advantage.

When Governor Crist was elected, he promised to cut insurance rates (by any means necessary, evidently) and to lower property taxes. Again, by any means necessary.

This is not a measure to please oldsters. This is designed to placate people who have moved to FL to relocate their personal and professional lives, because Florida, which was for so long "Alabama poor" (except for some well known areas) actually became thought of as an expensive place to live.
__________________
Woe to you, O Earth and Sea, for the Devil sends the beast with Wrath, because he knows his time is short.
Reply With Quote
  #26  
Old 07-27-2007, 10:24 AM
Take 2's Avatar
Take 2 Take 2 is offline
Member
SOA AAA
 
Join Date: Sep 2001
Location: second estate
Favorite beer: Hires Root
Posts: 4,862
Default

Quote:
Insurance Chief Hardens Stance on Rate Cuts By RANDY DIAMOND Copyright 2007. The Palm Beach Post, All Rights Reserved.
It might have been just another property insurance rate hearing in Florida, but for Insurance Commissioner Kevin McCarty, the July 10 proceeding was "illuminating."
Instead of the insurer's passing on the cost reductions allowed by legislators and reducing rates, it would use part of the money to "shore up its financial surplus" and seek a rate hike.
Worse still, it did not appear to him to be an isolated case.
McCarty has given notice that he will not approve that particular filing, from Florida Farm Bureau Insurance Cos., but that's just the beginning.
The state's top insurance regulator is seriously considering rejecting proposed rate cuts for State Farm Florida Insurance Co. (7 percent) and Allstate Floridian Insurance Co. (14 percent) as too small. He could order the state's second- and third-largest property insurers to put bigger reductions in place.
...McCarty has even hinted that the department may challenge State Farm's plan to drop more than 50,000 policies, starting in January.
While McCarty has broad power to ultimately reject any increase or policy change, insurance companies can appeal the decision, first to an administrative law judge and ultimately to the state circuit courts. Those disputes could delay rate cuts for Florida homeowners for months and leave the insurance companies in limbo.
...
McCarty's aggressive stance comes amid increasing questions as to what happened to the assurances of Gov. Charlie Crist and state lawmakers that significant rate reductions would result from the special session on property insurance in January.
Insurers had complained that rising reinsurance rates were the primary reason they had to raise rates. To address this concern "at the request and support of many insurers," according to McCarty, legislators expanded the state hurricane catastrophe fund.
Regulators originally had said customers could expect property insurance rates to drop by a statewide average of 24 percent -- and even more in coastal areas -- as the result of a $12 billion-plus expansion of the state hurricane catastrophe fund. The fund sells discounted reinsurance, which is insurance for insurance companies.
The expansion of the fund was supposed to allow insurers to buy less reinsurance from the costly global marketplace, then pass along the savings to customers.
In the case of Family Farm Bureau, the first insurer to file its "true-up," it used the money to purchase additional reinsurance and "shore up their financial surplus," according to McCarty. A true-up is the final accounting of an insurer's expenses in purchasing reinsurance.
...
He also blamed some insurers for not passing along savings to customers because they have raised their "profit expectations" to 15 percent or 20 percent. Florida law had limited underwriting profit for homeowners' insurers to less than 4 percent, but insurers contend that the law does not apply anymore because of the legislature's changes.
McCarty said other insurers seem to be buying unneeded additional reinsurance from the private market to wrap around the coverage of the state fund, instead of passing along savings to customers.
When insurers made filings in March to comply with the law, the average savings turned out to be only 12 percent. McCarty said regulators thought cuts would increase when insurers filed true filings to account for their final cost of buying reinsurance.
That has not happened, prompting McCarty to go public. He is confident, he said in an editorial, that insurers will "do the right thing by their policyholders."
... All of the policies dropped would be within 5 miles of the Atlantic Ocean or the Gulf of Mexico, they said.
McCarty said the filing "makes no sense."
State Farm never spells out that policy in its filing with regulators. He said the plan incorporates new underwriting guidelines that would enable the company to drop policyholders at will in areas that it deems vulnerable to hurricane damage.
''This is unfairly discriminatory," he said.
McCarty also explained his reason for rejecting the State Farm policy -- put into place in March -- that allows its auto policyholders to receive a 22 percent discount if their State Farm agent places them with Citizens for homeowners insurance.
McCarty said the policy could cause more policyholders to leave State Farm for Citizens voluntarily, giving the state-sponsored insurer more risk in a hurricane.
http://www.palmbeachpost.com/storm/c...URE_07251.html

McCarty claims it's unfairly discriminatory to underwrite based upon actuarial risk? Bad is good, black is white, and pigs fly in Florida.
__________________
there is no situation so bad that
getting upset won't make it worse

Last edited by Take 2; 07-27-2007 at 10:36 AM..
Reply With Quote
  #27  
Old 08-07-2007, 03:27 PM
tbug's Avatar
tbug tbug is offline
Note Contributor
SOA
 
Join Date: Jul 2006
Studying for EA Exams
Favorite beer: Yuengling
Posts: 10,799
Default

My favorite part of the June 26 article:
Quote:
"At the current moment it appears that it would be very, very expensive for us to purchase this kind of reinsurance for a storm event that only has a 2 percent chance of occurring," Sink said.
Um, it's expensive for a reason dummy
__________________
Reply With Quote
  #28  
Old 08-11-2007, 12:36 AM
ShebaPoe ShebaPoe is offline
Member
 
Join Date: Nov 2005
Location: NY / Palm Beach
Posts: 34,396
Default

Quote:
Originally Posted by tbug View Post
My favorite part of the June 26 article:


Um, it's expensive for a reason dummy
haha

This woman, Alex Sink, was a big exec with Bank of America before becoming state CFO, which is an elected positon in Florida. So she may see things differently.
__________________
Woe to you, O Earth and Sea, for the Devil sends the beast with Wrath, because he knows his time is short.
Reply With Quote
  #29  
Old 08-11-2007, 01:05 AM
Westley Westley is offline
Member
 
Join Date: Nov 2001
Posts: 26,224
Default

Quote:
Originally Posted by MattTheSkywalker View Post
This woman, Alex Sink, was a big exec with Bank of America
While I think that was her campaign line, I think it was actually just NationsBank (one of the shitty banks that BoA had for breakfast one day) and I don't think it was that high - like VP level or something, i.e., she was a middle-management nothing. Just something I was told (by somebody who didn't like her, so take it with a grain).

Edited to add: According to wiki, she was President of the Florida Banking Division, which sounds to me like a title you give to a woman when you want to show a woman President on your org chart. I mean, it's not like you need a President for each state or anything,
Reply With Quote
  #30  
Old 08-12-2007, 09:21 AM
Abnormal Abnormal is offline
Member
 
Join Date: Mar 2002
Posts: 6,585
Default

http://www.wjhg.com/home/headlines/9090656.html#

Quote:
The feelings of many homeowners and even state officials these days seem to be that lawmakers’ efforts to rein in the cost of home insurance haven’t worked. But while some legislators say the state should just go back to the drawing board on insurance reform, Florida’s chief financial officer disagrees.

Alex Sink plays a major role in overseeing the insurance industry in Florida as head of the state’s Department of Financial Services. And she’s not happy with how things have turned out since lawmakers put an additional 12-billion dollars of taxpayer’s money into the state’s Catastrophe fund. That money was supposed to allow insurance companies to bring rates down.

“We’re not seeing any real significant rate decreases. In fact, many companies have filed for rate increases, so I’m here as the state Chief Financial Officer saying something went horribly wrong.

We sat down with Sink to see what she thinks needs to be done to fix the crisis. Number One, she says, maybe we need to take back that 12 billion bucks if it’s not paying off. And number two, take those highly complex financial decisions out of the legislature’s hands and turn them over to the state’s Financial Services Commission, of which she’s a member. But she stopped short of piling on the common criticism these days.

Reporter Question… “The legislature and lawmakers haven’t done enough to really hold the industry’s feet to the fire. What’s your response? Sink. Oh, I think it’s much more complicated than that.” “I think our legislature has worked very, very hard.

But Sink does want to know if faulty analysis is to blame for the new law’s failure to bring rates down. She wants to know if insurers are passing the savings on to their customers as required. And she also thinks the state should do more to help grow new insurance companies and encourage competition. But Sink rejects the idea that lawmakers need to go back to square one and start over.

“Major overhaul means major disruption and we’ve been through so much disruption in the last two years. I just don’t think right now we can afford any more.”

But she also knows many people can no longer afford their insurance bills and a happy medium has to be found – soon.
Reply With Quote
Reply

Tags
positively tupacian

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off


All times are GMT -4. The time now is 10:20 AM.


Powered by vBulletin®
Copyright ©2000 - 2018, Jelsoft Enterprises Ltd.
*PLEASE NOTE: Posts are not checked for accuracy, and do not
represent the views of the Actuarial Outpost or its sponsors.
Page generated in 0.15955 seconds with 9 queries