Sounds like Continental Western Group who is owned by Berkley. They’ve been terrible on renewals…quit pushing rate!! You’re the one!
Like a good neighbor, State Farm is there....
- Thread starter The Tradition
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Yes I roll up through the sales side of the org. Is that what you are asking me?
The cost has gone up and it is harder to get because it is being hit more often because of the cost of materials and labor have gone up. Specific to the auto market we are seeing more driving and more reckless driving than pre 2020.
Yeah, this is just not what I have seen doing filings, actually going through the claims, and doing the reinsurance accounting. If you actually look into the claim files, it’s pretty clear that more frequent and intense CAT events are the issue for reinsurers.
Youre in claims? What reinsurance accounting are you doing?
Your missing the point. We could account for the cats and eat those no problem if our intial insurance wasn't getting ate to shit by what used to be x now being 3x replacement cost.
No. I understand that. If mutuals are even able to get a contract the premiums are through the roof… but the reason is because reinsurance companies have been hit hard.
Not really in just claims. We do the whole gamut of accounting services for mutuals and the state. For reinsurance we are reporting what is due to either the reinsurer or the mutual. That means going through claims and losses and making sure everything is going in the right bucket and that this is all inline with the terms of the contract.
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You joined late in this but it all started with me saying something like if people knew how many insurers were insolvent the banking collapse would be a after joke.
You and I are now getting to that part of this conversation.
I don't know what company your with, we are very fortunate that we have always had tight underwriting so our combined ratios didn't get completely out of whack and we were able to secure reinsurance in feb(?) (But even that felt delayed compared to previous years when reinsurance wasn't even really a discussion).
All you have are more insults.
You've taken an indefensible position here.
No; it all started with you simply wanting to contradict my statements on re-insurance.
Which was pointed out to you a dozen times as being identified in the link AND now by another industry professional. You continue to want to deny that, just to contradict anything I post, because you're an idiot.
O hey look, the guy who doesn't know what he is talking about wants back in to the conversation.
Go sit in the corner dipshit.
He's a blithering idiot now.
He's been told the re-insurance costs have been driven by exactly what I've told him is happening, but just wants to pretend "climate change" isn't one of the big drivers here. Apparently, it just has to be too many black people carjacking cars and stealing shit....
Makes sense.
You don't really have an understanding of much else here. Sales guys are good at what they do, but are dumb as bricks, otherwise.
...and the "claims" guys actually understand the re-insurance issues!!! SHOCKING, I say!!!
Exactly my point here. And exactly WHY some insurers are moving out of areas where those events are becoming unsustainable/unfundable risks.
Whiskey doesn't see that on his "sales" side of the equation, though.
Hahaha. Way to show your hand on not knowing shit Joe. The claims team is the lowest group on the totem pole. They report everything up, nothing down.
When that guy says he is in claims, he means he knows the numbers for the loses.
But keep talking you are doing great.
I swear I read through this thread and not a single insurance person is quoting insurance ratios. Very disappointing.
Nothing in SD is getting built at $150/SQFT....it's closer to $350 for anything done decently.
...and "reinsurance" is on the "up" end, which you still seem baffled by.
One more time, claims are up. We can account for cats, just like he said.
We wouldn't be eating up our first level if claims were not so damn expense.
Keep going though I'm sure you think you are correct.
Don't worry, Joe thinks you can build in San Diego for 250 a sq/ft.
You would be lucky to get someone to call you back for damn near double that.
P&C says auto as a whole is running 102.5 right now. I know our home numbers but not indusrty. There is one company currently in a profitable growth mode. ( not us, we are trying to cut our book and go for a profitable regression. The opposite of what Trad was talking about, which some companies have decided to do ( unprofitable growth for market share)
So, for the "average" CA home of 1860 sq ft, that's $650k
More than $500k, but certainly not in the millions. People think all the homes out there are LA mansions, but that's just not the case at all. Most are very small. And the "average" will be well above the "median" cost, because the larger portion of smaller homes means the typical claim is below $600k. If a median CA home is 1500 sq ft, that's a $525k median rebuild cost. I do not know the actual median, but that's a pretty good guess here.
No, you cannot account for cats, when re-insurers won't underwrite them.
That's the entire point of the OP's article.
Go try. Don't post until you get the job done.
If you really want to do society a favor, hold your breath while you are at it.
You don't and didn't know what you were talking about Joe.
How many times do you have to understand that if insurers cannot get re-insurance, they cannot operate on any level, anyway?
Again: NOWHERE in the OP are they stating "too many claims"
They cited rebuild costs, climate (cat exposure) and re-insurance, Period.
And it's already been explained to you that rebuild costs increases due to inflation are reverting to the long-term norm. Which means you just up your rates to match those costs, and you're solvent again.
“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.
Re-read that sentence until you can cite it from memory, Cletus.
What do you have to rebuild if you didn't have a claim?
Go sit in the ****ing corner Joe.
Now, you're ADMITTING that it's the catastrophic incidents driving the losses?
We've come full circle on the stupid here with you.
Did you actually read what you posted and what I posted or did you just back bend the hell out of yourself?
Joe, what must happen in order for an insurance carrier to indemnify a policy holder?
Generally insurance companies also like to avoid the more risky and costly clients to keep their prices low.
What is the good of an extra 10,000 customers if that 10,000 customers costs more money in payouts than the other 100,000 customers do combined?
Yep
And it matches what the original article states.
I can only imagine the frantic Google searching you've done the past couple of days, unsuccessfully trying to counter what the facts are here...
That's a hell of a narrarive you just created to try to validate yourself there little buddy.
Again Joe, this is my world, I've forgotten more about this shit than you will ever know.
It's no "narrative"
It is what the main article states, and what multiple other posters have informed you is driving insurers from these areas: re-insurance won't underwrite them.
I'm talking about the narrative.you created that I would.actually have to do any research outside of my 9-5 to walk circles around your ass regarding insurance.
You don't know what you are talking about. Continuing to talk isn't going to improve your situation.
But you can have multiple cats until you hit the aggregate limit. So you at the bear minimum are going need to pay the aggregate limit. In Iowa you have to have that coverage but due to the amount of losses experienced in the last few years the aggregate coverage becomes more and more expensive. I’m confused why you think having Cats in their own bucket saves the insurance companies from multiple cat claims in the year. For example, the limit could be 5 mil, but if you have 4 cat events on 2023 then you will have losses assumed by the insurance company of 20 mil or until they meet the aggregate contract.
Yes.
And because claims are more expensive, because 2x4s are.more expensive and cars are full of electronics, you hit that aggregate limit more often couple that with the increase in claims and you have people getting out of shitty markets.
I've never said a company cannot have multiple cats in a year.
But you've continued to ignore this is a main issue facing them, and why they cannot get affordable re-insurance.
Been pointed out to you over a dozen times now: Construction cost inflation is stabilizing. Risks from major events are increasing rapidly. The latter is the primary driver here, and you can find that just about anywhere with a simple Google search. Re-insurers have been telling you this for the better part of 2 decades now.
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