quote:
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.

You obviously not a clue as to how the re-insurers actually operate apparently. There is no governing board that they have to adhere to rate wise.. The pretty much name their price. The re-insurance market was a good market for investment return for a long time due to catastrophic events not being at the frequency they were the past few years.. It stopped being an avenue for hedge funds to get a good rate of return on their investment and the pulled it out and place it somewhere safer... So that effectively left the re-insurers footing the bill with little to no investment from outside money.. How doe combat taking on more risk?? Well you up your price.. and Since they aren't regulated on rate adjustments they can crank up the premium ...

quote:
he problem quite frankly in this state is that we have idiots in the DoI

No arguments there.. Letting every fly by night company come into the state and undercut premiums of solid carriers by the rate they did certainly didn't help.. What can be done about that in the future, who knows...

This post was edited on 6/8/23 at 5:26 pm

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Posted by Cymry Teigr

Member since Sep 2012

2106 posts

Posted on 6/8/23 at 8:18 pm to DarkDrifter

quote:
You obviously not a clue as to how the re-insurers actually operate apparently. There is no governing board that they have to adhere to rate wise.

Considering I’ve been going to the Rendez-Vous de Septembre in Monte Carlo and to the Baden Baden Reinsurance Meeting for many more years than you’ve probably been alive, have actively set up more captive insurance companies with reinsurance treaties than you probably even know exist, and probably handle more facultative reinsurance contracts on a weekly basis than you see new business, so forgive me if I disagree with your myopic views.

So let me reiterate again, if one of your carriers has a reinsurance expense that approaches an alleged 90% of their net retained premiums, then either there is something absolutely wrong with their rating structure, they have an abysmal loss record, are financially inept, or your underwriter is simply misstating facts to you.

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