<VV> Corvair Insurance in Florida - Warning (Flaw In Your Logic)

[The Robbins]

Or paying Dale Jr to do TV ads for them, talk about big bucks.



-----Original Message-----
From: virtualvairs-bounces at corvair.org
[mailto:virtualvairs-bounces at corvair.org] On Behalf Of roboman91324 at aol.com
Sent: Friday, January 15, 2010 5:34 PM
To: virtualvairs at corvair.org; jay.pitchford at gmail.com
Subject: <VV> Corvair Insurance in Florida - Warning (Flaw In Your Logic)

Jay,

Yes, like any company, insurance companies must remain profitable to stay 
in business and must adjust their prices accordingly.  However, the flaw in 
your logic is that Nationwide didn't realize until 2010 that Florida is 
surrounded by water (mostly) and that they are a "magnet for hurricane
activity." 
 These things didn't suddenly change this year.  Remember that Grant has 
had them for 10 years and it is likely that they have been doing business 
there for far longer.  If their losses have increased unexpectedly, there
must 
be another reason or reasons.  However, I doubt that they include water or 
hurricanes.

Just this man's opinion.

Doc
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
In a message dated 1/15/2010 2:48:27 PM Pacific Standard Time, 
virtualvairs-request at corvair.org writes:


> Message: 10
> Date: Fri, 15 Jan 2010 17:47:54 -0500
> From: Jay Pitchford <jay.pitchford at gmail.com>
> Subject: Re: <VV> Corvair Insurance in Florida - Warning
> To: Grant Young <gyoungwolf at earthlink.net>
> Cc: "virtualvairs at corvair.org" <virtualvairs at corvair.org>
> Message-ID:
>     <e1511a601001151447v66633a99w5bf1aa1f086a628e at mail.gmail.com>
> Content-Type: text/plain; charset=ISO-8859-1
> 
> The Rest of The Story  . . .
> 
> First, full disclosure: I live in Columbus OH where Nationwide is
> headquartered, but have no policies placed with them or close/immediate
> relatives that work for them. In fact, my wife's nephew was recently laid
> off by Nationwide.
> 
> Nationwide, like any other insurance company, struggles to match insurance
> rates with levels of risk. Florida residents choose to live in a 
> pleasantly
> warm portion of these United State that also happens to be surrounded by
> water on three sides, and is a magnet for hurricane activity. Nationwide 
> is
> feeling the brunt of many seasons of heavy hurricane losses from policies
> written there. The storm prediction models aren't terribly reassuring that
> the risks going forward will be appreciably less, either.
> 
> I have a hard time coming up with any sympathy that Floridian 
> homeowner/auto
> insurance rates are going up. If Nationwide can't accurately charge their
> risks back to the people living there and taking those risks, then (fill 
> in
> the name of your insurance company here) has to up the rates of the rest 
> of
> us. I would draw an analogy to health insurance for smokers. Do you smoke?
> Do you pay more for your health insurance as a result?
> 
> Nationwide loses customers elsewhere by charging higher overall rates to
> make up for their Florida losses. Other insurance underwriters that don't 
> do
> business in Florida have a competitive pricing advantage, so Nationwide
> either has to charge Floridians more to stay competitive elsewhere, or
> simply get out of Florida.
> 
> I think a 50+% price increase is a get-out-of Florida exit strategy ... if
> Florida regulators won't allow them to simply pull out, they make an
> outrageous rate hike request that is denied and then have the excuse they
> need to tell the State of Florida to (ahem) "go pound sand".
> 
> By all means, switch insurance companies if Nationwide is pulling out.
> Understand, however, that the companies you're switching to are going to
> jack your rates up just as high; they are simply going to do it patiently
> and stealthily, at a lesser rate of increase over a longer period of time.
> The insurance regulators in Florida are OK with that, as it and slows the
> exodus of taxpaying citizens from the state.
> 
> Jay Pitchford
> 65 Corsa Vert
> Columbus (Go Bucks) OH
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