Allstate Floridian Seeking Homeowner Rate Hike
POSTED: 11:02 pm EDT August 30, 2006
TALLAHASSEE, Fla. -- Allstate Floridian, the state's third-largest home insurer, asked state officials Wednesday for permission to raise premiums for some of its homeowner and condominium policies.
The rate hikes --
up to 24 percent for Allstate Floridian customers and 33 percent for Allstate Floridian Indemnity customers -- are needed to offset higher reinsurance costs, company spokesman Ryan Priest told the South Florida Sun-Sentinel.
Reinsurance is insurance coverage for insurance companies, to help pay claims after a catastrophe.
"The majority of the rate request that we have asked for is attributable to the cost of reinsurance that we have to purchase so we can adequately protect our policyholders," Priest told the newspaper for its Thursday editions. "That's really the driving factor."If approved, the rate increase could occur starting Dec. 3.
In February, the state Office of Insurance Regulation allowed Allstate to go ahead with a rate increase that left some homeowners dealing with premium hikes of up to 50 percent. Allstate said that increase was also designed to protect its ability to pay future claims after two terrible hurricane seasons.
http://www.local6.com/news/9766497/detail.htmlSo let me see if I get this straight:
The Company that the insurer uses for reinsurance is raising their rates.
Insurance company will make less money, so they raise your rates.
Family/person will make less money because they pay out more now. They have no ones rate to raise.
So maybe that insurance company should get a second source of income, turn their lights off more, conserve more paper, trim the budget while not booting out any of it's employees (like we would not boot out a family member to cut costs) and learn to survive with less.
Hell, that is what they want YOU to do.
Yeah, I get the whole business idea is to make profit and stay in business, help the consumer by writing them policies, etc and so on. I just think that allstate could probably cut their costs in other ways but are too damn lazy to do it, so they make you do it.
They get you coming and going. Everybody up the food chain from you wants more of your money, and when we ask for more of theirs via livable wages, more taxes on big business, etc, we are told just to work harder and you can be a success.
It's a fucking two way street. Hey allstate - open a hot dog stand and bring in more money. Go dumpster diving. Cut bonuses and pay of senior members, if they want to live better they can work two jobs or cut their own costs in their mansions.