He puzzled and puzzled till his puzzler was sore. Then the Grinch thought of something he hadn’t before! Maybe everyday doesn’t have to be Christmas for insurers who want higher rates for the shore. Maybe Christmas…perhaps…means zones are no more!
They’re finding out now that no Christmas is coming! They’re just waking up, I know just what they’ll do. Their mouths will hang open a minute or two, then the Whos down in Whoville will all cry, “Boo Hoo.”
“We won’t take zone filings for the time being. I think the larger carriers have abused that privilege. We’re trying to bring some reasonableness to how they handle their rates.”
The announcement came in the Sun Herald without ribbons! It came without tags! It came without packages, boxes, or bags!
Chaney said he does not believe statewide rate increases would mean people in North Mississippi are subsidizing Coast rates. He said insurance companies also want to charge higher rates in earthquake-prone areas.
Chaney believes some insurance companies are trying to price themselves out of the catastrophe market, something no one wants to see because coastal risk would then be concentrated in the state-run wind pool. He also said insurance company filings attribute a larger portion of Coastal risk than warranted to South Mississippi.
But this… this sound coming from insurers wasn’t sad. Why… this sound sounded glad. Every Who down in the Northbrook and Bloomington of Whoville, the tall and the small, was singing, without any presents at all! He hadn’t stopped Christmas from coming, it came! Somehow or other, it came just the same.
Mississippi Insurance Commissioner Mike Chaney has transferred $19 million provided by the state to the wind pool for reinsurance — coverage the pool buys to help pay for catastrophic losses from hurricanes. The wind pool last year spent a total of $67 million on reinsurance, which provided $600 million in coverage.
The wind pool covers about 42,000 policyholders. Chaney hopes $20 million left of the state money provided after Katrina, coupled with reduced costs for reinsurance, will be enough to help cover reinsurance costs for 2011 and 2012.
Is Chaney the Grinch who stole the insurance industry’s Christmas or not?