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  #41  
Old 08-20-2007, 12:42 PM
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Well greed for power and not necessarily money, but yes.

Or, we may be looking at a new world's record for the deepest depth below sand level for ostrich head placement
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  #42  
Old 08-21-2007, 12:27 AM
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The great thing about the Florida scenario - the Legislature gets to appoint the board of directors of Citizens, and the board reports back to the Legislature.

On top of that the Legislature dictates the freeze of rates. Any downside??? Oh sure, there could be a big hurricaine, and Citizens could go broke, but they have assessment authority to raise the funds from other lines of insurance, so where's the risk? /sarc
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  #43  
Old 08-23-2007, 01:12 PM
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Default Florida and the Credit Markets

While part of me would like nothing more than for Florida's house of cards to be exposed for what it really is, I really hope FL dodges the big one this year. If the state has to raise $10 billion in today's shaky credit markets, this thing could get REAL interesting. If financing fell through and the FHCF couldn't pay, many companies could go insolvent.
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  #44  
Old 08-23-2007, 01:20 PM
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Quote:
Originally Posted by Morrison View Post
While part of me would like nothing more than for Florida's house of cards to be exposed for what it really is, I really hope FL dodges the big one this year. If the state has to raise $10 billion in today's shaky credit markets, this thing could get REAL interesting. If financing fell through and the FHCF couldn't pay, many companies could go insolvent.
Florida would learn the same lesson that many on Wall Street are learning... you can only game the free market for so long.

Such lessons are massive short-term pain, but long-term benefits to society. I don't wish for death and personal harm, but I would be happy to see the State of Florida deal with the financial horror they've chosen. The alternative is to have their pols start talking about how successful their program is, and begin planning for a national plan that would consist of a multi-billion-dollar federal subsidy for the irresponsible people in Florida.
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  #45  
Old 08-23-2007, 03:51 PM
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Quote:
Originally Posted by Morrison View Post
While part of me would like nothing more than for Florida's house of cards to be exposed for what it really is, I really hope FL dodges the big one this year. If the state has to raise $10 billion in today's shaky credit markets, this thing could get REAL interesting. If financing fell through and the FHCF couldn't pay, many companies could go insolvent.
Which is exactly what Florida needs. They need 75% of the companies to collapse, because no one is rushing in with new capital like they did after Andrew with the current enviroment.
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  #46  
Old 08-23-2007, 04:19 PM
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Florida's Senator Nelson (former insurance commissioner) says the federal catastrophe solution is going nowhere.
Quote:
Senator Says the Issue ...is Stalled in Congress
Legislation to create a national catastrophe fund to help lower insurance costs is getting little traction in Congress, Nelson said. ...he is now hoping that Congress will create a commission to study the idea by the end of 2008.
...
"They promised 30, 40, 50 percent," Nelson, a Democrat, told an audience of more than 100 people at a Sarasota Tiger Bay Club meeting. "You need to take it to Tallahassee and insist on real reform of homeowners property insurance."
...
In an interview after his speech, Nelson did not offer specifics of how the state should produce more relief.

By Jeremy Wallace August 22, 2007 2007 Sarasota Herald-Tribune. All Rights Reserved.
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  #47  
Old 09-06-2007, 10:18 AM
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Quote:
Insurers' filings seek an average 28.2 percent increase.
Tom Zucco
August 31, 2007
St. Petersburg Times

Remember that promise from state regulators that windstorm insurance rates should drop by an average of 24 percent this year?

It's still not happening. On the contrary, requests for rate increases have been trending up in recent weeks as property insurers close in on a state-ordered deadline to review their rates.

A check of rate filings Thursday showed that of 42 companies that have made their final filing since mid July, 32 have requested an increase in rates, seven filed for no adjustment and three filed for a rate decrease.
The statewide average for all 42 filings is a 28.2 percent increase.

Counting only those filings with increases, the average hike is 37.7 percent.

Insurance companies have until Sept. 30 to submit their final rate request.
State Farm, Allstate and Nationwide have yet to make their final filings. But among other larger carriers that have, most are seeking hefty increases. USAA is asking for a 53.9 percent hike, with Farm Bureau at 30.3 percent and Hartford at 29.5 percent.

"There's no hurricanes and their profits are ridiculous. It just does not make economic sense," said Bill Newton, executive director of the Florida Consumer Action Network in Tampa. "Their investments must not be doing as well as they expected. What other explanation could there be?"

Part of this burst of rate hikes, Newton added, may be a public relations attack aimed at the governor and the insurance commissioner.

Rates for state-backed Citizens Property Insurance have been frozen until 2009.

Regulators had expected the final filings would reflect recent changes in state law that allow companies to buy more backup coverage from the state and pass the savings - an average of 24 percent on the wind portion of a premium - on to policyholders.

Gov. Charlie Crist said recently he is pleased with the law, "but not pleased with the adherence to the law."

The governor blasted the rate-increase requests as not only in potential conflict with the law but also "the most disingenuous thing I've ever seen an industry do."

"It will take time to get results we desire," Crist added. "But I'm terribly frustrated by this industry and amazed at their level of greed."
The problem with consumer advocates these days, is they're just too damn smart for us anymore. They see right through our nefarious plans as an industry. They finally figured out if there are no hurricaines, we make obscene profits and should be cutting rates in half, not raising them.

And of course we are filing double digit rate increases because our Investment Income dropped, and to make a political statement.

Usually at our company, (which I won't name) we only file rate increases to make a political statement. We don't ever look at loss ratios, rate indications or cat models, it's just politics to us. If the govenor of Florida would say nice things about us in the press, we would lower the rates, but he keeps attacking us, so what does he expect?

/sarc
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  #48  
Old 09-06-2007, 10:36 AM
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The governor & insurance dept think they're the only concern the carriers have. They can't figure out how to keep them from leaving. Maybe it has something to do with Florida government.
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  #49  
Old 09-06-2007, 10:43 AM
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The people I work with down there worry about nothing but the governor.

I tell them, you need to be concerned about a major hurricane and your exposure, the quality of your reinsurance, particularly the reinsurance from the state which basically will bankrupt you by requiring you to buy their worthless bonds if there's a major storm, and the concentration of risk you have in a few major cities.

Their response: Never going to happen, since 1992 Florida has had two once-in-a-lifetime events, so we're pretty much due for quiet and calm for the next 100 years or so, but we've got to get the governor.
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  #50  
Old 09-06-2007, 02:19 PM
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Quote:
Originally Posted by Westley View Post
Their response: Never going to happen, since 1992 Florida has had two once-in-a-lifetime events, so we're pretty much due for quiet and calm for the next 100 years or so, but we've got to get the governor.
Shouldn't it be "...due for quiet and calm for the next 200 years, or so"?
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