Comments on: Another Industry Takes a Dive: Retreat in the Face of a Warm Reception http://www.intellectualconservative.com/2007/01/04/another-industry-takes-a-dive-retreat-in-the-face-of-a-warm-reception/ Conservative and Libertarian Intellectual Philosophy and Politics Wed, 08 Feb 2012 23:00:53 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: tigertail http://www.intellectualconservative.com/2007/01/04/another-industry-takes-a-dive-retreat-in-the-face-of-a-warm-reception/comment-page-1/#comment-35555 tigertail Mon, 08 Jan 2007 01:25:15 +0000 http://www.intellectualconservative.com/2007/another-industry-takes-a-dive-retreat-in-the-face-of-a-warm-reception/#comment-35555 I'm an "insurance guy" from Florida but don't represent Allstate. I know about their woes in intimate detail however. Allstate, along with State Farm, Farmers and a host of others, has used market share theory to drive their business model. Simply put, Allstate likes to insure a certain amount of any community, say 20 or 30% That's generally a great way of looking at things if you are selling life insurance, annuities, stocks, bonds, mutual funds or any other financial services products. It's equally great if you're selling cars, washers, dryers, tools or computers. However, with catastrophically exposed property, it's a formula for the financial demise of an insurance carrier. Allstate wrote tons of business when we were in the 25-30 year period of hurricane lull. Now that we are a historically high period of hurricane activity (and they've tasted the result of insuring 25% of Punta Gorda, Pensacola, Biloxi, Ft. Lauderdale, etc. with the 2004 and 2005 hurricane seasons) they want to dump exposure as fast as they can. But they should just state that: "We are a for profit company and we cannot continue to leave our stockholders exposed to catastrophic and potentially financially devasting hurricanes. Therefore, we are withdrawing from certain areas of the country in am0unts significant to protect our shareholders and insureds." Instead, they are concerned about the effects of the public's perception, politicians pandering to it and the overall negative feelings towards insurance carriers. They use any and every other excuse to remove themselves from the exposure. This one is a doozy though and just inexcusable-global warming? It's a reach at best and positively irresponsible at worst. Shame on you Allstate! I’m an “insurance guy” from Florida but don’t represent Allstate. I know about their woes in intimate detail however. Allstate, along with State Farm, Farmers and a host of others, has used market share theory to drive their business model. Simply put, Allstate likes to insure a certain amount of any community, say 20 or 30% That’s generally a great way of looking at things if you are selling life insurance, annuities, stocks, bonds, mutual funds or any other financial services products. It’s equally great if you’re selling cars, washers, dryers, tools or computers. However, with catastrophically exposed property, it’s a formula for the financial demise of an insurance carrier. Allstate wrote tons of business when we were in the 25-30 year period of hurricane lull. Now that we are a historically high period of hurricane activity (and they’ve tasted the result of insuring 25% of Punta Gorda, Pensacola, Biloxi, Ft. Lauderdale, etc. with the 2004 and 2005 hurricane seasons) they want to dump exposure as fast as they can. But they should just state that: “We are a for profit company and we cannot continue to leave our stockholders exposed to catastrophic and potentially financially devasting hurricanes. Therefore, we are withdrawing from certain areas of the country in am0unts significant to protect our shareholders and insureds.” Instead, they are concerned about the effects of the public’s perception, politicians pandering to it and the overall negative feelings towards insurance carriers. They use any and every other excuse to remove themselves from the exposure. This one is a doozy though and just inexcusable-global warming? It’s a reach at best and positively irresponsible at worst. Shame on you Allstate!

]]> By: Mike Brown http://www.intellectualconservative.com/2007/01/04/another-industry-takes-a-dive-retreat-in-the-face-of-a-warm-reception/comment-page-1/#comment-35360 Mike Brown Fri, 05 Jan 2007 09:02:29 +0000 http://www.intellectualconservative.com/2007/another-industry-takes-a-dive-retreat-in-the-face-of-a-warm-reception/#comment-35360 Hey Bob, I was going to keep this to myself but I'll share it with you if you promise to not let anyone else know. Who are the ones who shout the loudest about the dangers of global warming? The Hollywood types. Where do they live? Malibu. At any time now they will be selling their Malibu homes for give away prices and I'll be there to pick one up on the cheap! What? They're not selling their beach front homes? Now I'm really confused. Don't they want to save their own lives? By the way, the ice caps on Mars are melting; must be all the SUV's. Mike Brown Hey Bob, I was going to keep this to myself but I’ll share it with you if you promise to not let anyone else know. Who are the ones who shout the loudest about the dangers of global warming? The Hollywood types. Where do they live? Malibu. At any time now they will be selling their Malibu homes for give away prices and I’ll be there to pick one up on the cheap!

What? They’re not selling their beach front homes? Now I’m really confused. Don’t they want to save their own lives?

By the way, the ice caps on Mars are melting; must be all the SUV’s.
Mike Brown

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