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In other words, it goes to show that if you don’t have competition in a place where claims will absolutely be filed, you will go broke. Smart move, but makes me
by thenerdhead 3y ago
In other words, it goes to show that if you don’t have competition in a place where claims will absolutely be filed, you will go broke. Smart move, but makes me feel insurance owes more to humanity than leaving people to fend for themselves.
- deleted 3y ago[deleted]
- rs999gti 3y agoYou mean more insurance companies? There isn't competition because insurers' odds against hurricanes and floods are bad. They can't collect enough premium before a payout occurs, so there will not be insurers that will take the FL home insurance bets without higher premiums.
- Spooky23 3y agoInsurance companies can price that risk. The problem is of the “fuck around and find out” variety. Florida is creating a lot of new, hard to price risks. Risk managers hate unknown probability, high impact events. How many oceanfront high rises built of reinforced concrete are potential at risk of catastrophic failure due to poor regulatory environment? How will climate change and various environmental risks in Florida impact risk? On the car side, how many uninsured accidents will take place due to the crackdown on undocumented or under documented drivers? On the liability side, what kind of crazy torts will result from the weird crackdowns on teachers and doctors?
- thenerdhead 3y agoThey can't price that risk. That's the whole problem of why they are "pulling out". To be able to do that in the future as there are regulations. Nation-wide insurance companies use risk pooling. They create funds for things like hurricanes that come every 3 years. And they have reinsurance for catastrophic losses. While it is a simplification, seems like greed to me and serving shareholders, not people who actually need it in a time of need.
- thenerdhead 3y agohttps://figafacts.com/category/insolvency/ https://figafacts.com/category/insolvency/
- mint2 3y ago“In a place where claims will absolutely be filed” Insurance isn’t supposed to work like that - there isn’t a way these houses can be covered at a reasonable rate without forcing other customers to subsidize them.
- thenerdhead 3y agoRates are much higher in tornado alley. So that argument is pretty hard to use.
- mint2 3y agoTornados are damaging but hurricanes are an order of magnitude broader