Insurance Premium Increase

[MikeOH]

There may be higher level insurers that provide some kind of 'stop loss' protection to the carriers we pay premiums to.  There may not be many of them and they are raising rates to multiple underlying carriers to make up for their 'stop loss' payouts.  That would be another reason why multiple carriers we deal with all are raising rates.

Again, my argument is that the EXTEME hikes we are seeing are NOT indicative of normal loss ratios and market competition.  Something else is at play.

[MikeOH]

1 minute ago, RobertGary1 said:

Because if there is profit at lower rates one would break away and steal everyone’s business by rating politics 10% less than everyone else and taking all the profit for themselves. 
 

-Robert 

And, that may well be going on: I get my renewal with a 50% hike, and switch to one with 'only' a 40% hike.  We are still being screwed because of losses in what amounts to a different market that incurred an aberrant loss.  We are paying for losses we have NO control over.

[RobertGary1]

15 minutes ago, MikeOH said:

And, that may well be going on: I get my renewal with a 50% hike, and switch to one with 'only' a 40% hike.  We are still being screwed because of losses in what amounts to a different market that incurred an aberrant loss.  We are paying for losses we have NO control over.

True. That’s the predictable outcome of less underwriters fighting for our business. 
 

-Robert 

[ArtVandelay]

Hmm, do we have any actual proof of that, or is that just what we are being told?

Maybe it has something to do with the seemingly endless gear up incidents.

[MikeOH]

7 hours ago, ArtVandelay said:

Maybe it has something to do with the seemingly endless gear up incidents.

A endless continuation of 'more of the same" doesn't explain 40% increases.

Back to my original question:  Is there any, verifiable, evidence that older pilots are causing the significant portion of gear-ups? Or, any other accident category?

[Jerry 5TJ]

17 minutes ago, MikeOH said:

Back to my original question:  Is there any, verifiable, evidence that older pilots are causing the significant portion of gear-ups? Or, any other accident category?

Perhaps not in the concrete, no-nuance form you seek.  

But yes, there are studies that generally show a negative impact on safety versus age of older pilots. 

Aging and the GA Pilot

[RobertGary1]

But if profitability had not changed why would several (of really only ever a handful) have exited the business? If they like money and it was profitable they’d have stayed. 
 

-Robert 

[Parker_Woodruff]

15 hours ago, MikeOH said:

Hmm, do we have any actual proof of that, or is that just what we are being told?

3 carriers left the market in 15 months.  Not bought out. Just left. They don’t just leave if they’re making money. 

[Parker_Woodruff]

17 hours ago, MikeOH said:

There may be higher level insurers that provide some kind of 'stop loss' protection to the carriers we pay premiums to.  There may not be many of them and they are raising rates to multiple underlying carriers to make up for their 'stop loss' payouts.  That would be another reason why multiple carriers we deal with all are raising rates.

Again, my argument is that the EXTEME hikes we are seeing are NOT indicative of normal loss ratios and market competition.  Something else is at play.

Light aircraft have been a loss leader for many carriers for a long time.

To break even, most carriers need to pay about 65¢ in claims for every $1 they take in. The 35¢ in the middle is operating expense and broker commission.

But keep in mind the carriers have been getting increased reinsurance bills.

I worked at a major carrier for awhile. We could write a risk with the exposure that was almost 3 years of gross premium. Of course a loss that size would tank out company, so we relied on reinsurance say if a loss exceeded $X. If a hypothetical $50MM loss happened - a company might pay $4MM and the rest would go to reinsurance. 

[Nukemzzz]

On 9/26/2020 at 6:15 PM, Parker_Woodruff said:

Light aircraft have been a loss leader for many carriers for a long time.

To break even, most carriers need to pay about 65¢ in claims for every $1 they take in. The 35¢ in the middle is operating expense and broker commission.

But keep in mind the carriers have been getting increased reinsurance bills.

I worked at a major carrier for awhile. We could write a risk with the exposure that was almost 3 years of gross premium. Of course a loss that size would tank out company, so we relied on reinsurance say if a loss exceeded $X. If a hypothetical $50MM loss happened - a company might pay $4MM and the rest would go to reinsurance. 

Insurance on insurance?  Such an odd business gambling...I mean insurance. Lol

Assured has been sitting on my renewal for over a month now with no hints on how it’s going.  I’m starting to get nervous.