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Lower insurance rates...

Old 05-15-2007, 11:49 AM
  #1  
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Default Lower insurance rates...

what the he!! are they smoking. I know in my area, insurers are dropping people left and right based on "Rhode Island has not had a severe storm in a long time, therefore it is due for one".

I can tell you first hand that the carriers that are providing coverage, are not doing it at lower rates either.

Would really like to hear from the FL contingent on this one as well.

http://finance.yahoo.com/insurance/a...ower-Insurance
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Old 05-15-2007, 03:53 PM
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Default Re: Lower insurance rates...

It's the same thing here in Charelston, SC.
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Old 05-15-2007, 04:11 PM
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Default Re: Lower insurance rates...

If you have a hard time sleeping tonight, read this. It has to do with ART (alternative risk trasfer) but explains what is happening in the property and casualty industry right now. Plus Rough Notes is an actual industry trade publication, not a Yahoo article.

Basically it says that the market is softening and rates are coming down EXCEPT on property insurance in coastal areas. No flaming. That would just be killing the messenger.

http://www.roughnotes.com/rnmagazine...l07/04p136.htm
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Old 05-15-2007, 04:17 PM
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RI Builder, I hope that your politicians are smarter than those in Louisiana. On top of the already inflated rates here, the state created a insurance company of last resort which subsidizes its customers my taxing private insurance plans up to 35%. My insurance bill more than double this year and not because of my insurance company but because the state added to my burden.
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Old 05-15-2007, 06:01 PM
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I assume that you are talking home owner's insurance. That is a government sanctioned con game, IMO. What really frosted me is my recent auto insurance bill in which my insurer stated that my rate increase was due my lowered credit score resulting from my not having had a mortgage or car payment during the past ten years.
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Old 05-15-2007, 06:41 PM
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Default Re: Lower insurance rates...

GOKAT, Progressive did the same to me on my boat insurance and I called and complained. The person I talked to said the same thing and then asked when my last car loan was, who with, etc. After I gave him the info, hed gave me an almost 20% discount because he now had a car 'loan' report on file with his company. Pretty weird, but I took the discount!
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Old 05-16-2007, 02:58 AM
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The end of that article kills me..... katrina was probably a once in a lifetime event in magnitude.......its my personal opinion the reason rates are rising in coastal areas an not inland as well is that insurance companies can more easily justify rate increases there.
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Old 05-16-2007, 10:29 AM
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I posted this a couple weeks ago in Fla. forum...we in Fla were told to expect reduced
windstorm rates...first...maybe 30-40%...then 15-30%...then 5-10%...that was the last
announcement...then it was ...well maybe no increase over 2006 rates...

WELL...the F'ing ins cos. and politicians were FOS...my windstorm went UP 63%...

our condo liability policy was "not renewed" and our board of directors ins went up 30%...

That's the latest from here...and it ain't pretty
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Old 05-16-2007, 10:44 AM
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Shag:

That article appears to only talk about commercial insurance and not residential property.

Bsmit24 - I am rather certain that if left to local politicians, insurance in RI will be FUBAR in no time at all.
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Old 05-16-2007, 10:59 AM
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Maybe we'll have no storms this year and they'll cut the coasts some slack. I'm feeling you pain. Anybody want to partner up and start an insurance co?
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Old 05-16-2007, 11:00 AM
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RI Builder - 5/16/2007 10:44 AM

Shag:

That article appears to only talk about commercial insurance and not residential property.
Storms aren't very picky.

Seriously, the same is happening on the residential side. The insurance companies have made money and we are seeing more and more competition in both commercial lines and personal lines. However, like the article said about coastal commercial exposures, they are just as scared, if not more so, of coastal residential exposures.

What is the answer? Either let the rates go where they should on the coast and pi$$ off the coastal property owners or subsidize the rates in some shape or form and pi$$ off those who are doing the subsidizing.

One thing I keep going back to. If the big bad greedy insurance companies can make money in these areas, why aren't they falling all over each other trying to write the business?
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Old 05-16-2007, 11:22 AM
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Shag:

I honestly do not know why they are not writing business in the NE. Their logic that RI must be due for a major hurricane is seriously flawed. It is the same as saying that I have not won Powerball in 5 years, so I must be do to win.

Of course they can claim rates are dropping in non-coastal areas, simply because they have stopped writing policies in the coastal areas. They have hedged their bets by basically writing policies in areas that are not subject to any type of weather event.
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Old 05-16-2007, 02:32 PM
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Perdido: Thanks for that piece of advice. I'll try to find my last car finance data and see if it makes a difference. Best regards.
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Old 05-16-2007, 04:12 PM
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Up here in Mass the 2 biggest insurers dropped Cape My proprtyis 2 miles from the coast but I was put into the new FAIR plan. The state runs it. My bill went up almost 300% Doesn't sound fair to me. Its a pain for your broker because he has to redo all the policies but only gets 5% commissiion, not 10%. But since the bill tripled, he makes out OK also.
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