re: Louisiana Citizens proposes 63 percent homeowners insurance rate hike for 2023

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that doesn’t know any better.

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That’s a lot of Louisiana educated people. And a big part of the problem.

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Taxpayers are getting squeezed in a tax in disguise

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Come again. It’s so good for La Citizens that they are raising rates and will be enticing companies to take the policy holders away. Makes no sense

63 percent of zero is zero.

-Lousianan liberal living in his parent's basement.

After Katrina I saw a (60 minutes maybe) report that stated that the big insurers have set up reinsurance businesses in the Bahamas and can basically set there own rates and reserves. And that these insurers then used the reinsurance rates to force premium increases stateside.

Can anyone comment on the accuracy of that report?

I was going to have LA Citizens when my last insurer folded. However, the forced wind and hail coverage from my mortgage company was actually substantially cheaper. I'm sure it's a shitty policy but I don't really care

Respect....

Need to send another 100 Billion to Ukraine

If you can make money somewhere else and children aren’t a concern, why would anyone still be here? Family is important, until money and lifestyle makes it less important.

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So they bought $55 million of reinsurance for $32 million in 2021. Then bought $1.2 billion of reinsurance for $120 million a year later? Reinsurance being 60 cents on the dollar in 2021 but only 10 cents on the dollar in 2022? Seems like reinsurance would be more expensive in 2022 than 2021. Was the $55 million for 2021 missing a zero and supposed to be $550 million?

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It’s semi-complicated, but I’ll try and break it down in a quick summary:

Think of “re-insurance” as a tower, made of $5mil stacks, with the lowest number ($5mil) at the bottom.

Etc (up to $1 bil or whatever)
$20 mil
$15 mil
$10 mil
$5 mil

The first $5mil stack costs more, as it’s likely to pay out. The higher up you go ($10 mil, $15 mil, etc) with each “stack”, the cheaper the stack gets, as you as less likely to have to pay out with each “stack”.

The reinsurance is based on a number of factors, including data with cat models, avg year of home, avg yr of roof, roof shape, and all sorts of other bullshite, including obv each carriers capital and profitability and loss ratios over “x” number of years.

The reinsurance market, for the first time in SEVERAL years, had a contraction in capital, from like $23bil to $21bil, which is roughly 10%, so obv rates increased due to that factor alone.

An important date in the reinsurance market is approaching (Sept 30). We all know it’s been a quiet season, and that bodes well for everyone involved, from carriers to commissioners to clients. The only ppl unhappy with that news are roofers and attorneys. It may take a year or two, but rates will get back to normal I sincerely and expectantly hope.