Here is a great article on one of my favorite subjects insurance! It is like a roller coaster adventure with it here in Florida but I think this one has some powerful information that will be very useful for everyone.
You may have heard that the insurance companies costs of doing business have been dropping every year since we have had a storm here. Now 7 years later the cost savings are significant, in some cases up to 36% less. There has been a lot of savings in the reinsurance area, which is the buffer coverage the insurance companies buy to help pay claims if another storm hits. 6 noteworthy companies are dropping their rates as a result, which makes perfect sense. I have only heard of one company on this list, Universal Property and Casualty.
What is noteworthy is that some of the larger companies are going in the other direction and seeking to raise their costs!! State Farm, despite having its reinsurance costs lowered 6.1% was approved for a 6.3% overall rate increase! Allstate’s Casual Key Indemnity Co., despite its reinsurance costs dropping 13.4% still sought an increase of 7.4%. Castle Key Insurance Co. saw costs drop 12.7% and sought a 12.2% increase. Strangely, the next paragraph is from an Allstate spokesperson who said that now they have reversed course and are not seeking any increases. Boy these companies are not looking real good right now and I am sure many of their customers are happily calling the 6 companies on this list today!
Let’s hope there are plenty more rate droppers to follow and that is very possible since there are still half of the 30 insurers who have not yet filled for rate fillings. We are getting there, slowly but surely.
Some Florida insurers seek rate decreases, others don’t despite fall in key cost up to 36 percent
Orin Rosenfeld
President
Rosenfeld Realty Advisors
9858 Glades Rd. Suite 209
Boca Raton, FL 33434
Phone: 561-756-1665
Fax: 561-470-0707
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