The headline seems pretty dramatic, but I thought the article itself was fairly balanced.
A lot of this comes down to reinsurance companies refusing to take on the risks in these areas.
Avery said:
A lot of this comes down to reinsurance companies refusing to take on the risks in these areas.
Loss ratios drive everything. Instead of just raising premiums, they shut down areas they see as high risk.
@Zeke
Some companies now only take new risks if the homes are newer, loss-free, and have multiple supporting policies.
Lennon said:
@Zeke
Some companies now only take new risks if the homes are newer, loss-free, and have multiple supporting policies.
Do we work at the same place? Offering actual cash value on a six-year-old home is just wild.
@Zeke
Funny you say that. I had one personal lines customer this year who brought in over $30k in revenue. Quality over quantity.
Lennon said:
@Zeke
Funny you say that. I had one personal lines customer this year who brought in over $30k in revenue. Quality over quantity.
That’s incredible, and it definitely helps retention.
@Zeke
Some state insurance departments are finally letting companies adjust for climate-related losses, but it’s been a cycle of denied rate hikes leading to stricter underwriting. It’s messy.
Clancy said:
@Zeke
Some state insurance departments are finally letting companies adjust for climate-related losses, but it’s been a cycle of denied rate hikes leading to stricter underwriting. It’s messy.
They might block rate increases, but they can’t control underwriting rules.
@Zeke
Guidelines get filed with the state. When they’re blocked, insurers pull out entirely. California saw this until recent reforms allowed stricter rules and mitigation requirements. It’s a catch-22.
@Clancy
Yeah, they’ll find ways around it. Sometimes they add extra hurdles like credit checks or pre-bind requirements to deter new customers.
Zeke said:
@Clancy
Yeah, they’ll find ways around it. Sometimes they add extra hurdles like credit checks or pre-bind requirements to deter new customers.
It’s been the hardest market I’ve seen in my 40 years in the business. I’ve been saying things will balance out for two years now, but who knows.
@Clancy
I’m honestly worried it might not improve anytime soon.
Zeke said:
@Clancy
I’m honestly worried it might not improve anytime soon.
The only positive is that competition has leveled out, making it harder to be undercut.
Zeke said:
@Clancy
I’m honestly worried it might not improve anytime soon.
Stay optimistic. Things will eventually stabilize.
Zeke said:
@Clancy
I’m honestly worried it might not improve anytime soon.
It’ll probably get worse with more climate-related claims.
Avery said:
A lot of this comes down to reinsurance companies refusing to take on the risks in these areas.
I worked in reinsurance. It felt like overnight the market dried up. No one wants to touch runoff business anymore either.
@Chen
What exactly is runoff business?
Emory said:
@Chen
What exactly is runoff business?
It’s when insurers stop writing new policies and just manage existing ones. Some newer insurers buy these books to grow, while mature companies sell them off because they’re a headache to manage.
Avery said:
A lot of this comes down to reinsurance companies refusing to take on the risks in these areas.
This is happening because of climate change risks. It’s clear as day.