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I've been buying stock in Florida insurance companies. It's clear to me the state government is going to relax regulation on insurance companies to avoid the si
by katzinsky 2y ago
I've been buying stock in Florida insurance companies. It's clear to me the state government is going to relax regulation on insurance companies to avoid the situation in Californa and the state run insurance is already obviously insolvent. The competition has cleared out and the rising insurance rates will mean a downward correction in house prices and labor which will create a larger profit margin.
The main issue at this point is wealthy people/PE buying up all the homes self insuring.
- JumpCrisscross 2y ago> clear to me the state government is going to relax regulation on insurance companies Interesting thesis. So premiums will keep going up, but insurers will be allowed to cut coverage to maintain margins. This would work until the next disaster hit, which could well be a few years away. Question is why lenders would go along with the charade.
- katzinsky 2y agoNo I think the underlying assets/labor will get cheaper (IE there will be deflation, especially locally in Florida.)