Quote:
Originally Posted by mulligan
Because when the hurricanes last hit several areas of Florida ( think Andrew and Katrina), the subsequent claims just about wiped out several insurance companies. The bigger the $$ pool available for the next one, the better chance for their survival.
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Andrew was south of Miami in 1992, but Katrina (2005) was New Orleans, not Florida. Were you thinking of Charlie, which hit SW Florida in 2004?
There
must be some kind of cap on how large a money pool the insurance companies are allowed to build up. And why must it all come from premiums of Florida homeowners who haven't had major hurricane claims in almost
a decade?
Not only are my premiums higher, so are my deductibles.
And, in addition, the principal insurers have set up a system where they "hedge" their risk liability by reinsuring a part of their risk with other companies.
The rates and deductibles need to be adjusted downward to reflect the claims experience of the past ten years.