re: When does our state bribe to insurance companies kick in?

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That isn't it at all.. most of the insane rates we're seeing is solely based on Re-insurance these companies still writing are having to buy. one of my companies I represent when they re-upped their reinsurance was stuck with about 90 cents on the dollar of premium taken in just in re-insurance... Hard to run a company on 10% of what you're taking in..

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You're missing the point.

If reinsurance companies have set their premiums so high that it's costing one of your companies 90% of their retained net premiums then there's a total disconnect between their premium allocations for catastrophes and for general run of the mill insurance claims. I do however suspect that the 90% premium represented the reinstatement premiums after having blown through their limits (possibly multiple times) rather than their initial reinsurance premium cost.

And the problem is most definitely exacerbated by primary carriers not given a rat's arse about limits once the aggregate of all claims have put them into their reinsurance kicking in, after all at that point it's no longer their money their doling out to homeowners. Until of course they near their maximum reinsurance limits when they start playing hardball again.


ETA. The problem quite frankly in this state is that we have idiots in the DoI who aren't requiring companies writing high risk coastal properties to have sufficient limits in the way of reinsurance relative to their financial status and the volume of business they write. The reserves and paid-up capital of numerous of those primary carriers is just a pittance when put into perspective of the total risk exposure they have.