Like a good neighbor, State Farm is there....
- Thread starter The Tradition
- Start date
#ThanksClimateChangeAndFossilFuelIndustryDisinformation
If they spent less on those Mayhem commercials during the final 4, they’d have more money for claims…
Always seemed to me that insurance companies should be required to be all in or all out.
And not just Cali...
www.kob.com
Seems State Farm just wants to be your neighbor in Goldilocks places....
State Farm hesitant to insure northern New Mexico homes
ALBUQUERQUE, N.M. – It’s becoming more difficult to insure your home or business against wildfires in New Mexico – that’s according to some local insurance agents.“We’ve had a lot of larger residential houses where we’re not able to find them an option at all,” said Jake Boles, an...
www.kob.com
Seems State Farm just wants to be your neighbor in Goldilocks places....
So now (in this thread) companies should be thinking about more than their bottom line?And not just Cali...
State Farm hesitant to insure northern New Mexico homes
ALBUQUERQUE, N.M. – It’s becoming more difficult to insure your home or business against wildfires in New Mexico – that’s according to some local insurance agents.“We’ve had a lot of larger residential houses where we’re not able to find them an option at all,” said Jake Boles, an...
Seems State Farm just wants to be your neighbor in Goldilocks places....
The entire idea behind property insurance is that everybody pays in, so that when the inevitable happens, the insurance company can pay out.
Limiting the number of insured properties runs counter to this idea. They should try to get more people putting money into the pot, not fewer.
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Trad knows what's best for insurance companies, not those mamby pamby actuaries.
This is so stupid. It has been and always will be a desert. Read Cadillac Desert. There are far too many people there.
I work in insurance. Brah… this is dumb.
Limiting the number of insured properties is called de-risking and stock insurance companies and mutual insurance companies are doing it all over the country. You take in a bunch of claims out of an area that gets hit hard every year, it won’t be long before you’re out of business.
Isn’t this shit happening in FL too?
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P&C insurance premiums are increasing, and will continue to increase, pretty dramatically. Especially in some areas of the country that are getting pounded by natural disasters.
We NEED insurance companies, and not just a few. We need to have enough of them to keep the premiums competitive.
We NEED insurance companies, and not just a few. We need to have enough of them to keep the premiums competitive.
important to remember that a large portion of the west has been in a mega drought for decades now. In the western slopes of CO you can't get insurance on a lot of the houses unless the homeowner installs an on-site water storage/fire suppression system for the fire department to hook up to in the event of a fire. California has the added flaw of terrible fire and brush management (along with pretty much every other policy in the state) so I'm not surprised to see insurance companies pulling out of some product offerings.
Primary insurers aren't able to get re-insurance due to increased risks and increased costs.
Wanna guess why?
Go read a bit on Munich-RE's site or Lloyd's of London about "climate change" and insurance costs. Learn something today.
It's what major re-insurance companies are telling you (and the insurers that get underwriting from them)
Yep
Primary Insurers are trying to balance the income they get from policyholders (which has limits in some states) with their own re-insurance premiums they need to pay to larger re-insurers. And those underwriting costs have skyrocketed over the past decade or more, as climate change risks have become obvious.
We had a whole climate change thread over this, and Trad (I recall) claimed the re-insurers were just "gouging"; he had no answer when I asked why some other rich entity doesn't just step in and make money undercutting those "gouging" re-insurers. They are all raising their rates, because the financial risks are skyrocketing with the climate risks: fires, floods, etc.
Adding bad risk for the sake of market share is a terrible idea.
Wisconsin Reinsurance Company which used to cover many Iowa mutuals is on the verge of going under… yeah, not price gouging when you are paying out 10s of millions in CAT claims monthly.
Foe those of you who haven't read this the first 25 times I have posted it.
The department of insurance in California said no carrier soliciting business in California could take any additional rate starting in 2022. Because, and I quote, if California had to pay for itself, "no one could afford to live there".
So now, major carriers walking away from a top 20 world market because the politics and crime have gotten so costly.
**** California.
The department of insurance in California said no carrier soliciting business in California could take any additional rate starting in 2022. Because, and I quote, if California had to pay for itself, "no one could afford to live there".
So now, major carriers walking away from a top 20 world market because the politics and crime have gotten so costly.
**** California.
If the public knew how many insurance carriers were currently insolvent the banking collapse would be a after joke.
I don't blame State Farm. Folks that don't buy land on hurricane or fire potential should not be forced to pay more because of the folks that choose to.
They're walking away mainly due to climate change risks & associated costs of major disasters.
EVERY Re-insurance company literally tells you this on their website. Go look it up.
Munich RE
Lloyds
Etc. Etc. Etc.
Joe, I'll humor your bullshit on several topics but you are in my world now. I have forgotten more about insurance than you will ever know.
Cats have thier own bucket. That isn't what is driving cost. That's relatively cheap to reinsure/insure because of the actuarial data.
You seem to know very little about re-insurance. If this is "your world", then you're clearly in the bottom decile of inhabitants there...
Hahaha... smart of you to fold your hand. Cat's have thier own bucket.
It isn't "global warming" that is driving up cost. It's the cost of the materials themselves (auto/home), it's higher cost to fix, it's people driving more and more aggressively than pre 2020, it's assholes stealing cars, it's assholes driving around uninsured/ underinsured.
Go find your area of expertise, this isn't it.
Why are you bringing up auto insurance, in a thread that has little to do with it?
State Farm stops home insurance sales in California, citing wildfire risks
Reinsurance rates are hitting their highest levels since the 90s. And it's absolutely due in large part to climate risks/exposures. In CA, that risk is wildfires. In FL, that risk is flooding and hurricane (becoming stronger than historically)
Selling insurance in flyover country to people is a far cry from the actuarial work and re-insurance industry.
“State Farm General Insurance Company made this decision due to historic increases in construction costs outpacing inflation, rapidly growing catastrophe exposure, and a challenging reinsurance market,” the company said in a statement.
Learn to read, Cletus
God damn you are dumb. It's the second ****ing paragraph.
"The insurance giant stopped accepting applications for all business and personal lines property and casualty insurance in California on May 27. However, State Farm’s decision does not affect existing auto insurance."
Also, what is the very first thing they point out and the thing I have been pointing out? Increased cost of materials and labor.
'due to historic increases in construction costs outpacing inflation"
the entire article is centered around wildfire risks; people's cars also burn when their homes burn, bro.
And the other two points I've been making for you. Which you continue to ignore.
Are secondary, just like the order they were listed in.
Also, I just caught your "selling" comment. I don't sell shit anymore. You are literally talking about my area of expertise. I'm the guy responsible for explaining to all the agents why we are taking rate, how we are taking rate, how we are offsetting that rate in our target demo, how to place specific customers in our various products and how we can manage our combined ratio to get rate back to where we want it.
The closest I get to selling any more is "this our company, this is the small business opportunity we present, you in or not?"
You're probably right Joe because there were never droughts before the climate change scare. I remember reading about all the SUVs causing dust bowls in the 1930s.
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