Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (327460)	2/26/2007 5:02:59 PM
From: Road Walker	Respond to of 1578470

re: Do you think private companies, when they try to leave an insurance market because they find it unprofitable, should be required to continue to write insurance in the unprofitable area by the state? It's a complicated question. Florida a few weeks ago put a freeze on policy cancellations... which didn't hold up in court but will be appealed. Insurance isn't your run of the mill business... it is regulated in every state. Right down to prices charged. It's not part of the free market system. That said, insurance companies need to have funds in order to pay for a CAT. And individuals and companies need to have access to insurance. In Florida they just passed a law that will cap reinsurance costs... effectively taking putting the CAT risk on the taxpayers; lower risks on the insurance companies. If we go three years without a major CAT, it will be a good decision. If we get the big one, the state will literally go belly up... there ain't enough money there. In the meantime, the <highly regulated> insurance industry had record profits in '04 and '05, despite record hurricane damage. It is a very complex conundrum... I pay a lot of attention since it is an important local issue but frankly it's beyond me. I know that a lot of people are leaving the state, especially the very young and the very old, because they can no longer afford insurance.