We don't win in State Farm vs. Charlie Crist

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Published at: www.orlandosentinel.com

State Farm is Bluffing

June 25, 2009

Analysis by: GLG Expert Contributor

State Farm is renewing most windstorm risk west of US1 in Miami State Farm is renewing "all other perils" and dumping Wind east of US1. State Farm has many loyal but frightened (20-40 year old) agency owners whose existence is threatened if State Farm abandons Homeowners, so it is unlikely. Gov. Christ is setting Citizens (JUA) wind storm rates politically and not financially. Washington already turned down Gov. Christ to bail out JUA if we get a disaster. According to National Underwriter, Citizens sells $3 Billion in premium and has $29 billion in liabilities.

State Farm is Bluffing

June 25, 2009

Analysis by: GLG Expert Contributor

State Farm is renewing most windstorm risk west of US1 in Miami State Farm is renewing "all other perils" and dumping Wind east of US1. State Farm has many loyal but frightened (20-40 year old) agency owners whose existence is threatened if State Farm abandons Homeowners, so it is unlikely. Gov. Christ is setting Citizens (JUA) wind storm rates politically and not financially. Washington already turned down Gov. Christ to bail out JUA if we get a disaster. According to National Underwriter, Citizens sells $3 Billion in premium and has $29 billion in liabilities.

State Farm / Florida: Insurance Intelligence?

June 24, 2009

Analysis by: GLG Expert Contributor

* Executives at large insurance organization are accountable for KPI’s to stakeholders; not for providing “socialistic goods, regardless of the financial considerations”.

A Christ Veto Likely a Body Blow to Floridians

June 16, 2009

Analysis by: GLG Expert Contributor

Put all your eggs in one basket? That's what a veto by Governor Christ would do to Florida's hurricane insurance market. His veto would serve to concentrate risk, putting the liability into fewer hands. These "hands" are the now fewer remaining private insurance firms and the citizens of Florida. Level the playing field? Not Christ's veto. Those more at risk (coastal dwellers) will be subsidized by those less at risk (central Floridians). This is a tax on the less wealthy to support the opulent homes of the wealthy coastal inhabitants.

Left alone by government, markets will always find the way to profitability.

June 16, 2009

Analysis by: GLG Expert Contributor

Too much government interference and dictation has put a massive, Florida employing company in such a frame of mind that it will probably leave Florida even if Tallahassee changes it's tenor.