About Me: Paige is a reporter at the Florida Capital Bureau.
Insurers Reap Record Profits (again)
This just released from two insurance industry groups:
"Property-casualty insurance industry net income for the first half of
this year hit a record $32.6 billion."
A co-author of the report is the Property Casualty Insurers
Association, which has been beating up Gov. Charlie Crist particularly
hard over his efforts to force competition in the Florida market.
"Property-casualty insurance industry net income for the first half of
this year hit a record $32.6 billion."
A co-author of the report is the Property Casualty Insurers
Association, which has been beating up Gov. Charlie Crist particularly
hard over his efforts to force competition in the Florida market.
The record net income surpasses the $29.4 billion highwater mark set
midway 2006. The report is based on a survey of U.S. property and
casualty insurers, including both home and auto underwriters.
For insurers, the golden lining carries a dark threat: increased
competition. The Insurance Information Institute is among those urging
insurers to keep from entering what usually comes next -- a cycle of
falling rates.
"The most important question facing the industry today is whether this
painful and destructive cycle can be broken," says Robert Hartwig,
president of the national trade organization and another frequent voice
in the Florida insurance wars.
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2 Comments:
I have worked for a private insurance company in Florida for 15 years. I work in the fraud investigation division of that company. The things that I will say are factual, not just my opinion. Please check it out for yourself.
Citing a $ 32 billion dollar profit sounds huge, but if you recognize that profit is spread across all insurers across the entire nation it is not that much per company.
The state doesn't talk about the fact that they already mandate the maximum amount of profit that an insurer in Florida can make, which is aproximatley 5 to 7 %. That is less than most retail stores make.
The state does not mention that they make no attempt to regulate the private re-insurance companies that insurance companies must pay premiums to.
The state does not mention that they absolutely do not have the ability to re-insure all potential losses in the state, so private insurance companies are forced to pay those high premiums to private re-insurance companies.
The state does not mention that a percentage of private insurance premiums are a mandate of the state to support the states insurance company, Citizen's Insurance.
The state does not mention that if there is a major catastrophe that causes Citizens to go belly-up that the private insurance companies and therefore their policy holders will be even further taxed to prop up Citizens Insurance Company.
The state does not mention a huge percentage of claim dollars (25% to 40%) are paid to support insurance fraud by attorneys, contractors, public adjusters and policyholders, just to name a few.
The state does not mention that ultimately they are simply attempting to socialize insurance. Think about it.
Would you think it would be okay for part of your annual insurance premium to pay for someone elses insurance claims in other states? That is socialization, and that is what the state is trying to do to you as a policyholder in Florida.
I'm a republican, but I disagree with our current Republican Governor, Charlie Crist, and his sidekick, kevin McCarty, who are, for political gain, is spinning and withholding information in an attempt to make it appear that it is all the insurance industry's fault.
It simply is not. The company that I work for is currently having to pay $ 1.10 in property re-insurance for every $ 1.00 in property premium that we recieve. The company that I work for is losing 10% on property insurance before any property claims are even filed.
It will hit home some day when the state double taxes you private policy holders in the normal sur-charge plus the bale out sur-charge that the state will force upon you after a major catastrophe in order to keep Citizen's insurance solvent.
It is not right and your government is lying to you by withholding information.
BULL!!!! That insurance company you work for pays you big bucks too, don't they? Insurance companies, builders and ALL of our politicians are in this together, you feed me, I'll feed you.
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