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Old 05-11-2015, 09:55 AM
 
70 posts, read 99,965 times
Reputation: 49

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Calling it a scam makes you sound like an idiot. Especially with no data. I can't upload the entire presentation but this link has a lot of good information. Especially look at the claims data from 2012 and 2013. Losses we are just now experiencing the rate adjustments from.

Catastrophes: U.S. | III

Last edited by Ansonyuhas; 05-11-2015 at 09:56 AM.. Reason: grammer
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Old 05-11-2015, 10:03 AM
 
631 posts, read 885,109 times
Reputation: 1266
Quote:
Originally Posted by Ansonyuhas View Post
Calling it a scam makes you sound like an idiot. Especially with no data. I can't upload the entire presentation but this link has a lot of good information. Especially look at the claims data from 2012 and 2013. Losses we are just now experiencing the rate adjustments from.

Catastrophes: U.S. | III
Posting data from a clearly biased source doesn't make you any better.
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Old 05-11-2015, 10:10 AM
 
31 posts, read 40,935 times
Reputation: 28
Quote:
Originally Posted by frenzyrider View Post
Oh so a 20% increase YoY is justified because cost of repairs are going up and frequency of losses are increasing every year in DFW? However, inflation remains historically low. If it is so high then why aren't insurance companies a ittle more transparent in their dealings and books? Just like healthcare, this insurance industry is one big scam. You have to shop around every year to keep your premium from rising.
20% isn't due solely due to those trends. When the price is adjusted that much it's usually due to either change in expected Catastrophe costs and/or company specific risk factor adjustments to your profile as an insured.

Auto and Homeowners insurance is heavily regulated by the states to be sure that the customers aren't being taken advantage of and to ensure that insurers remain solvent.

When you see a rate hike of that magnitude, I'd encourage you to shop around. Use sites like: Insurance Ratings - Studies - Articles | J.D. Power to find reliable insurance carriers.
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Old 05-11-2015, 10:24 AM
 
631 posts, read 885,109 times
Reputation: 1266
Quote:
Originally Posted by Soh Cah Toa View Post
20% isn't due solely due to those trends. When the price is adjusted that much it's usually due to either change in expected Catastrophe costs and/or company specific risk factor adjustments to your profile as an insured.

Auto and Homeowners insurance is heavily regulated by the states to be sure that the customers aren't being taken advantage of and to ensure that insurers remain solvent.

When you see a rate hike of that magnitude, I'd encourage you to shop around. Use sites like: Insurance Ratings - Studies - Articles | J.D. Power to find reliable insurance carriers.
More heavily in some states than others. Texas has some of the highest rates because of our issues with the "Don't tread on me!" crowd pushing for deregulation and because of regulatory capture.
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Old 05-11-2015, 10:32 AM
 
8,149 posts, read 3,676,088 times
Reputation: 2718
It is amusing how insurance industry likes to talk about the losses paid, but not about the amount collected in premiums, lol.

Now, from that link above, let's take 1.5bln loss in Texas in 2013. How many households in Texas, 8-9 million or so? 1.5k average homeowners premium. Well, I guess no need to continue with the math...
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Old 05-11-2015, 10:46 AM
 
Location: Castle Hills
1,172 posts, read 2,633,184 times
Reputation: 656
Quote:
Originally Posted by serger View Post
It is amusing how insurance industry likes to talk about the losses paid, but not about the amount collected in premiums, lol.

Now, from that link above, let's take 1.5bln loss in Texas in 2013. How many households in Texas, 8-9 million or so? 1.5k average homeowners premium. Well, I guess no need to continue with the math...
Agree. I have noticed since living here in Texas that every single year my car and auto insurance goes up and sometimes by a large amount and I haven't had a single claim and have a perfect driving record as well. I call several other brokers and they tell me they can't beat my rates, so that means all the other carriers have increased their rates as well. It almost feels like price fixing to me. I really do believe that there is something corrupt going on.
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Old 05-11-2015, 10:47 AM
 
Location: Castle Hills
1,172 posts, read 2,633,184 times
Reputation: 656
Quote:
Originally Posted by Ansonyuhas View Post
Calling it a scam makes you sound like an idiot. Especially with no data. I can't upload the entire presentation but this link has a lot of good information. Especially look at the claims data from 2012 and 2013. Losses we are just now experiencing the rate adjustments from.

Catastrophes: U.S. | III
You said you were going through training classes? You need to keep going through them because you have a lot to learn. Is this your first job in life?
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Old 05-11-2015, 10:50 AM
 
Location: Castle Hills
1,172 posts, read 2,633,184 times
Reputation: 656
Quote:
Originally Posted by Soh Cah Toa View Post
20% isn't due solely due to those trends. When the price is adjusted that much it's usually due to either change in expected Catastrophe costs and/or company specific risk factor adjustments to your profile as an insured.

Auto and Homeowners insurance is heavily regulated by the states to be sure that the customers aren't being taken advantage of and to ensure that insurers remain solvent.

When you see a rate hike of that magnitude, I'd encourage you to shop around. Use sites like: Insurance Ratings - Studies - Articles | J.D. Power to find reliable insurance carriers.
Mine have gone up that much as well and as mentioned before I have a perfect record, never had claims, etc. I have shopped rates out there as well with brokers who scan multiple companies to get the most affordable price and they are no cheaper than my current plan. So the rates are going up across the board from multiple companies. Sure, some like State Farm and Allstate are higher than others, but they all appear to be going up.
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Old 05-11-2015, 10:52 AM
 
70 posts, read 99,965 times
Reputation: 49
Apparently you don't understand how a loss ratio works. Most carriers paid out more in claims then they collected in premium. Not a sustainable business plan. Therefore most insurers filed rate increases to offset these losses. Now that we have had a couple somewhat calm years I would expect to see rates to slowly dip down again. There is always a 2 - 3 year delay due to the time it takes to research and implement pricing changes,

Most of the cat losses have also been concentrated in north Texas, so most of the premium relief will be felt in other parts of the state. Keep in mind that Cat losses do not include the claims that only affect one insured.. i.e. thefts, vandalism, water claims, house fires, etc...
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Old 05-11-2015, 10:54 AM
 
70 posts, read 99,965 times
Reputation: 49
Quote:
Originally Posted by ufcrules1 View Post
You said you were going through training classes? You need to keep going through them because you have a lot to learn. Is this your first job in life?
Yep I'm 16 years old. First job. Nice username.
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