Is Chaney the Grinch who stole insurance industry’s Christmas?

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.” Continue reading “Is Chaney the Grinch who stole insurance industry’s Christmas?”

Familar Problems in Alabama’s X-Wind Homeowners Insurance Market

The first week of April, Jeff Amy at the Mobile Press Register authored an excellent story on the coastal X-wind HO market in Alabama. His story, unlike our coverage of it, is very timely. However, unlike justice delayed, Mr Amy’s piece has gotten better with time. The reason for that also explains my detour back to November 29, 2006 and the deposition of State Farm Senior Vice President Mr Robert Trippel, an otherwise useless character who still managed to provide some enlightening commentary when he was deposed in Watkins v State Farm about several Katrina related matters. While the meat of Mr Trippel’s depo is dedicated post on its own he had a few things to say about X-Wind policies in his zone, which includes Mississippi and Alabama so it is on page 103 of his deposition that we begin as the Watkins lawyer Jeff Marr questions Mr Trippel:

Q All right, Mr. Trippel, after you identified — what are these called, initiatives, is that what we’d call them — in these different states these things that are being conducted, what are they called?

A I would say it’s the new underwriting guidelines.

Q Okay. And you covered Mississippi and Georgia. Which state is next? What’s another state in this zone that’s been affected by the change of underwriting guidelines following Katrina?

A Alabama.

Q How has Alabama’s underwriting guidelines been changed following Katrina?

A Very similar with a mile setback off the coast and hurricane deductibles for new business.

Q Okay. So similar to Mississippi in that new business is only a mile off the coast, correct? Is that correct?

A Correct.

Q And then the wind hurricane — excuse me, hurricane deductible is now 2 percent to 5 percent?

A Correct.

Q Any others?

A No.

Mr Marr, like Nowdy and I must have been scratching his head wondering what skills besides the ability to recite the company line Mr Trippel brought to his very senior position on the Farm. He certainly does not know the basics of insurance finance as we continue on the bottom of page 104: Continue reading “Familar Problems in Alabama’s X-Wind Homeowners Insurance Market”

SLABBED Daily – April 8

The past that isn’t even past – and the present of Paul Minor no longer has miscellaneous text appearing at the end due to a late night “delete” key malfunction .  now-did-not-c-it until morning.

Another busy day ahead and a mixed bag of news. Two items merit more attention than time permits this morning.

One, from the Sun Herald, FEMA housing aid runs out for storm victims May 1.

The other is a Times Picayune report on flood insurance costs falling 5 percent in parts of Louisiana. Sop and I both have notes for a post on rate changes that are climbing elsewhere; so, you’re certain to read more about rates once our work schedules ease a bit.

If you’re hungry – for news or otherwise – try the Sun Herald story Former coast restaurants’ recipes never fail to please.

An item of personal interest on the Clarion Ledger ends this brief summary, Powe dropping pounds but raising hopes. Continue reading “SLABBED Daily – April 8”