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Old 09-11-2013, 12:02 PM   #16
Art
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City: SF Bay Area
Vessel Model: Tollycraft 34' Tri Cabin
Join Date: Feb 2011
Posts: 12,569
Insurance actuaries work in unusual sets of mathematical rules and have GREAT lee way to "assume" circumstances that “might” arise. As well as to place financial burden on whomever they please, in whatever region they desire, in order for their company to recoup payouts to others that occurred elsewhere.

Society of Actuaries: http://www.soa.org/

Actuary: http://en.wikipedia.org/wiki/Actuaries

Couple years ago my SAFECO boat ins suddenly doubled from $550 + to $1100 +. No change in policy and no claim ever made. When I asked my broker to determine why she simply could not and would only say that SAFECO as well as other ins cos had elevated policy costs across the board in my region.

I contacted other ins cos and found their costs for same policy coverage had become similar – pretty much across the board. I then spent much time calling into SAFECO HQ to find the real reason why my region’s pleasure boat ins costs had suddenly doubled?? Eventually, and after persistently climbing to higher exec levels in SACECC HQ I got in touch on phone with a SAFECO VP. Following is what was said:

Me: Hi, I am CEO of my corporation and after much time on phone to reach an exec at your level I would like you to tell me why my pleasure boat ins costs suddenly doubled for no apparent reason?? I dock and use my boat in SF area.

Her: Have you increased your coverage or filed any claims?

Me: No, never. My insurance coverage has been the same for years with no claim.

Her: There has been an adjustment in that region.

Me: Why?

Her: I’m not sure; let me get back to you.

Me: (in an elevated, stern tone of voice) No, I’m sorry but that won’t work. I’ve spent hours trying to learn why SAFECO has doubled my boat ins costs and I am confident that you know the reason. Please tell me now, or, upon end of this conversation I will immediately switch coverage to another co.

Her: (in basically a whisper) OK, but, please do not repeat that I told you this: SAFECO actuary dept raised rates across regions to help pay for claims filed after last year’s huge Atlantic coast storms.

Me: Thank you and good bye.

Basically I (we) pay for others losses. I understand that to a point... in that on a broad scale the burden of insurance risk needs to be shared... but to double ins costs across a region that is 3,000 plus miles from where the losses/claims happened, that has no likelihood of any calamity so severe, and in one fell swoop, seems a bit over the top! I’d like to see their books on P & L now that a couple years have passed since the storms. My ins costs have remained doubled and I doubt they will be lowered any time soon!

Back to surveyors:

A very nice fellow on TF – Peter, “Marine Insurance Guru & tuna fishing addict!” (Avatar: Pau-Hana) was nice enough to provide me with an ins quote that is somewhat lower than others. The caveat for all ins cos is that I need to get a new survey accomplished. So... seeing as I am 100 miles from boat, haul out is not necessary at this time, as well as other schedule interrupters... I’ve currently decided to simply pay SAFECO ins till I haul. Then I will likely spend $$$ for a new survey and reinsure through Peter. That said, in addition to survey costs, it might be that I will need to spend additional capital for some boat items that the surveyor feels need attention and that the ins co wants completed before policy is issued. I know our Tolly boat like the back of my hand and I make sure that all her portions stay in perfectly good, workable condition. But, similar to what psneeld mentioned – I too have small bubble at top of my lower helm’s compass... and... seeing as it works fine and I virtually always pilot from the bridge I really don’t want that type item from the survey to end up costing me unnecessary expen$$$es.

Happy Boating Daze! - Art

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