Insurance rate went up - no claims

[BandB]

That's not really cynicism. The marching orders of an insurance company are to make money, just as with any other business including this forum. Now, what sets companies apart is how they do that, how they treat three constituents-their customers, their employees, their vendors/suppliers. There are profitable companies in every industry that do things right and companies in the same industry that don't.

 

[BruceK]

Insurers may quote competitively to buy your business initially, and after that try to claw back any "discount" by raising premium. But that usually happens in small increases, not big ones like yours. Shop around, they may not want boat insurance business any more, unless it`s at their price.

 

[BandB]

Insurers may quote competitively to buy your business initially, and after that try to claw back any "discount" by raising premium. But that usually happens in small increases, not big ones like yours. Shop around, they may not want boat insurance business any more, unless it`s at their price.

You somewhat point out another tactic. I'm a boat insurer. I try to keep my risk spread. If sudddenly I find I have too much exposure in one area, then I might increase rates that an exceptional amount hoping to lose some and reduce my total exposure. I know of one insurer that apparently did a great job selling along the Alabama and Mississippi coasts and on over to Panama City. Corporate saw the exposure and they shut down all new sales and then did some non renewals.

 

[twistedtree]

Has nothing to do with the Bahamas. Could be half a continent away. It goes like this:



Profits miss projections, down 5%. Executive meetings. We must raise rates to recover the losses.



Simple. No discussion saying, but let's look at the history, we've done quite well. No discussion saying, but this area wasn't even impacted. Simply income not what we want, raise rates.



That's why I said, it's all actuarial, until it isn't. That's the same reason rates in South Florida went up after Sandy. Sandy didn't come close to FL.

I agree. It's the PR department that attributes it on whatever seems most convenient and plausible.

I remember back in the late 90's there were some issues with the Asian economy, referred to as the Asian Flu. I remember listening to our CEO at the time talk about our drop in revenue and blaming it on the Asian Flu. Everyone bought it because that's what Wall Street was talking about at the time. But it was utter bull crap.

 

[twistedtree]

A cynic? Maybe not so much. Perhaps a realist.

Realist. Anyone who has been an exec in a public company and will speak honestly about it would agree.