Honest question about insurance companies

[tednvon]

Overall this appears to be a much better year for mega insurance companies; no hurricanes, no major disasters that come to mind and stock market up. So has this skyrocketed profits and what will it do to rates overall?

Thanks...just a question after last year's disasters?

 

[astromeria]

Maybe we should put up another poll for homeowner's insurance. Ours went up substantially despite no hurricanes or claims

 

[brewer12345]

Heh, how much do you want to know? The short answer is that the actual insurers did OK, but they have been hurt by skyrocketing reinsurance rates. I see no end to very high reinsurance rates in sight.

 

[Nords]

I see no end to very high reinsurance rates in sight.

Berkshire Hathaway shareholders: "Woo-hoo!"

Homeowners: "OK, do you offer a $5000 deductible?"

 

[brewer12345]

Berkshire Hathaway shareholders: "Woo-hoo!"

Homeowners: "OK, do you offer a $5000 deductible?"

FL Homeowner: "What do you mean hurricanes are excluded from coverage?"

 

[Nords]

FL Homeowner: "What do you mean hurricanes are excluded from coverage?"

Yup. We're lucky to get a 2% deductible on a home appraised at $800K assessed at $580K.

 

[heyyou]

Dear Customer,
We had to raise your rates due to our having to pay some claims. That is not how we planned. If this happens again, we need to be ready. If there is any profit after our Super Bowl advertising and CEO bonus, we will give it to our stockholders. If you need to contact us, write us at our new high rise office building. Thank you for your support.

 

[brewer12345]

Dear Customer,
We had to raise your rates due to our having to pay some claims. That is not how we planned. If this happens again, we need to be ready. If there is any profit after our Super Bowl advertising and CEO bonus, we will give it to our stockholders. If you need to contact us, write us at our new high rise office building. Thank you for your support.

The shareholder part is correct, but the rest of it is a drop in the bucket. The letter really says:

"We would have been happy to bump your rates 5% this year (like always), but we have to pay more for our reinsurance. Those Bermuda bastards are nailing us for double what we paid the year before and giving us less protection for it. Goddamn rating agencies make us buy this stuff even though we'd rather roll the dice with your and our shareholders' money. Oh, well. Pay up."

 

[FinanceDude]

The shareholder part is correct, but the rest of it is a drop in the bucket. The letter really says:

"We would have been happy to bump your rates 5% this year (like always), but we have to pay more for our reinsurance. Those Bermuda bastards are nailing us for double what we paid the year before and giving us less protection for it. Goddamn rating agencies make us buy this stuff even though we'd rather roll the dice with your and our shareholders' money. Oh, well. Pay up."

Brewer, you're on a roll............when is your next comedy club apperance??