Homeowners Insurance Loss Ratio Chart

In reference to the following published by Florida Today newspaper, I received the following question. I’m no longer licensed as an insurance agent, so I can’t give personal advice on insurance, but I’ll go ahead and comment on the general issues if it might be helpful for those looking for some direction on these issues.

Here’s the original email I received:

The chart that appeared in FLORIDA TODAY last Sunday, 8/5/07, deserves some analysis. I am no expert. I wish one would step forward. Until one does, here are my observations:

Allstate Floridian gives property policies to Royal Palm

Allstate Floridian, a subsidiary of Allstate Corporation, was originally formed in 1996, in the political aftermath of Hurricane Andrew that struck Florida in 1992. It’s purpose was to be a stand-alone company that would help to isolate its parent corporation from severe catastrophe losses in Florida. After years of chaos in the Florida property market, the creation of a state-mandated and state-funded property market, and the insolvency of nearly a dozen property insurers (including others that left the state before insolvency), the Florida marketplace for property insurance was significantly desolate.