Another Insurance Bailout for FloriDUH

[SHELLY]

Better cut back on the Christmas spending a bit to pay for yet ANOTHER insurance surcharge....the latest in a series of many.

"The Florida Insurance Guaranty Association, which pays claims for defunct insurers, will tack on another 2 percent surcharge on homeowners policies throughout the state to raise additional funds to cover claims from the Poe Companies insolvency.

This new assessment, which will hit property owners as their policies renew next year, comes as they're already dealing with sky-high rates. They're also paying surcharges to make up deficits for the state-run insurer and the catastrophe fund.

FIGA's board approved the 2 percent emergency surcharge to raise an additional $225 million, said Michelle Lovern, deputy director of the guaranty association. That's $20 for every $1,000 of premium; a $3,000 premium would carry a $60 surcharge.

The association had already tacked on a $225 million assessment -- also 2 percent -- in June."

HOMEOWNERS TO SEE NEW STORM SURCHARGE

 

[TooFarTampa]

SHELLY, what is your take on the insurance special session that's planned for January? Without too much sarcasm, I'd love to hear what you think might (or won't) get accomplished.

I can't figure if we've reached that tipping point yet where lawmakers are prepared to do something really drastic. An awful lot of observers (ie columnists and editorial writers) and grass roots activists are rising up all over the state, demanding major changes in the system. The citizens (not Citizens) deserve it. Yet we're 3 weeks away from the special session and lawmakers still seem to be "floating" ideas. It is not encouraging.

It seems to me that the "imminent economic meltdown" is headed for us unless we make some changes in the insurance and property tax structures in this state, yet I'm not sure the lawmakers are truly convinced of that yet. If they are, they've shown surprisingly little direction.

 

[30A Skunkape]

Insurance reform within the bounds of the traditional carriers will be tough. They have amazingly aggressive lobbyists that make serious reform nearly impossible. One idea being kicked around in Louisiana is establishing a catastrophic fund at the federal level that people can tap into to get funding for damage not covered by homeowners insurance. I am not sure of the situation in Florida, but in Louisiana, Allstate just attempted to get wind and hail coverage stripped from policies in several parishes. That comes on the heels of a storm free year and huge premium increases. It is a huge mess

 

[SHELLY]

SHELLY, what is your take on the insurance special session that's planned for January? Without too much sarcasm, I'd love to hear what you think might (or won't) get accomplished.

I don't see anything of substance coming out of these "forums," they're just government's way of keeping the great unwashed mob, armed with pitchforks and torches, away from the city gates as long as they can.

At the end of the "insurance daisy-chain" is the Reinsurers--the folks who are the insurance companies TO the insurance companies. The insurance companies are simply saying they are passing the cost of reinsurance along to the good citizens of Florida. And to the mighty Reinsurers--the likes of Berkshire Hathaway, AIG and other biggies around the word--Charley Crist and his cabal of Florida loonies are merely piss ants who reinsurers will crush under their heels on their way to maximum profit.

The best one can hope for is to hedge by buying some stock in reinsurance companies.

<return to sarcasm mode>

 

[sberry123]

Here it is... reinsturance is big business.

http://money.cnn.com/quote/quote.html?pg=qu&sid=817&symb=BRKA&time=1yr&uf=0