Quote:
Originally Posted by badkarma318
If an insurance company came into Florida, offered fair rates (good for us), and avoided the coasts (good for them), they wouldn't know what to do with all of the customers.
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Avoiding the coasts would reduce their hurricane risk exposure, but wouldn’t reduce their out of control litigation (roof scam) exposure. And insurers don’t want more customers than they know what to do with in any given geographical area, that does not add uncorrelated risk which diversifies their overall book of business.