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Old 02-02-2018, 09:18 AM
r8ingStuff r8ingStuff is offline
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Default Trump Cuts

Will the Trump corporate tax cuts put pressure on P&C insurance rates? Anyone have any speculation as to just how quickly insurers will respond to this?
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Old 02-02-2018, 09:39 AM
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A few states have specifically requested during filing that we change the tax rates we use in our Return on Capital model.
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Old 02-02-2018, 11:09 AM
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The rate approval process for personal lines is long enough that I wouldn't expect to see a ton of insurers rush out and file a new rate just to lower the profit provision.

I expect profit provisions on rate filings to decrease slightly and the impacts to roll through as insurers work through their regularly scheduled rate filings.
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Old 02-02-2018, 11:19 AM
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There is expected to be some pressure to have rate reflect the tax change.

California:
https://www.insurance.ca.gov/0400-ne...ease010-18.cfm

More specifically, the consumer groups' letter that is prompting "immediate rate reductions now" (emphasis added):
http://www.insurance.ca.gov/0400-new...01-23-2018.pdf

AIA/PCI joint response to above consumer groups' letter:
http://www.aiadc.org/ViewEmail.aspx?...c-df96b5e411f4
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Old 02-02-2018, 02:01 PM
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Why am I not surprised to see J Robert Hunter's signature on a letter that omits just enough details to come to a significantly overstated estimate of insurer profitability?
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Old 02-02-2018, 02:10 PM
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Curious if states will take the "force everyone to file now" stance. It may not have the results the regulators were hoping for.
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Old 02-02-2018, 04:01 PM
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I'm not in personal lines, but assuming 10% after tax ROE and a 1:1 premium surplus ratio seems...optimistic. Would a regulator even let you file a profit provision that high?
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