This is great news (unless you own multiple Florida homes).
The insurance industry has long been the sleeping giant of climate policy response. A lot of very red states have a lot to lose from climate disruption, and the threat of finding your property uninsurable gives you a whole new perspective on whether we need to do something on climate before the tipping points are reached.
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USAA to restrict new business in Florida
04/11/2007
Due to the current state of the Florida insurance market, USAA is changing how it underwrites homeowner, renter and fire policies in that state.
(...)
Florida politics have severely restricted USAA's ability to charge adequate property insurance rates for the risk the association bears on behalf of its Florida members. These actions jeopardize our ability to protect the long-term viability of the association, as well as the assets of our members. Please consider the following facts:
- Over the past 10 years, USAA has paid approximately $220 million more in Florida homeowner insurance losses and expenses than it has collected in Florida homeowner premiums.
- Florida residents account for 49 percent of USAA's exposure to natural disaster risk, yet make up only 9 percent of USAA policyholders and pay 12 percent of USAA's property insurance premiums.
- With more than $2 trillion in coastal property exposed to the risk of catastrophic hurricanes -- and a history of frequent, strong storms across the state -- Florida has the most challenging property insurance market in the country.
Therefore, the State of Florida has left us no choice but to take the following actions in order to limit potential future losses, and to protect the association and its members.
- USAA will only provide new homeowner or renter insurance policies for the primary residences of active military members required to move to the state pursuant to military orders.
- If your primary residence is in Florida and insured by USAA, USAA will continue to underwrite your existing homeowner or renter policy.
- If your primary residence is located outside of Florida and insured by USAA, USAA will continue to underwrite one existing homeowner, fire, or renter policy in Florida.
- Property insurance policies in Florida in excess of those cited above will be non-renewed upon written notice from USAA and in accordance with Florida's laws and regulations. We expect this change to affect about 10 percent of our 270,000 Florida members.
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Comments
View as Flat
Benny Big Eye Posted 11:33 pm
12 Apr 2007
Evan Mills
There is a fairly obscure guy at Lawrence Livermore named Evan Mills who has been doing excellent work in this area.
He has published in numerous journals on the effects of extreme weather events on the insurance industry.
http://tinyurl.com/m9ksj
Benny Big Eye
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amazingdrx Posted 11:48 pm
12 Apr 2007
Puts the cost to climate change
100s of trillions in damage and lost economic growth from catastrophic climate volatility.
Or a huge boost to our manufacturing base and tax base that will restore good jobs and rescue US from bankruptcy.
Keep on gas guzzling or get this renewable energy revolution going. Those are the choices we face.
But listening to mass delusional media and political diversion no one would even know that.
http://amazngdrx.blogharbor.com/blog
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Sam Wells Posted 3:22 am
13 Apr 2007
Big Insurance Makes Big Bucks
I feel so sorry for those poor insurance companies that had to pay out all that money, get hauled into court, and settle for all those claims ... and then manage to make billions in profits for their stockholders. Gee, my heart really goes out to them, closing off all those markets so they can further elevate their profits from simply average to outright obscene greed. Poor babies, let's bail them out with a bazillion-dollar federal subsidy deal, those poor, poor insurance companies.
Evidently, the run-up on insurance has very little to do with hurricanes and global warming and everything to do with corporate greed, market manipulation, and the robber-baron mentality. /sammie
Onward through the fog
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JMG Posted 5:03 pm
13 Apr 2007
Not all insurance companies bloodsucking criminals
While I am second to none in my mixed anger & disappointment for insurance companies, I should note, in response to Sam's comment, that USAA has no stockholders, as it is an non-profit membership association (a kind of coop of sorts).
USAA divides its reserves into "Subscriber Savings Accounts" that can be cashed out if you leave the Association or when your estate is settled when you die. It builds up every year in proportion to how much you've spent on insurance.
Moreover, when the total reserves exceed the target sum, it returns dividends to every member from the SSA in proportion to their premiums. Typically, the SSA jumps up and then they send you a check for about half of the increase.
"An optimist is someone who thinks this is the best of all possible worlds. A pessimist is someone who is afraid that the optimist is right."
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