2 insurance companies seek 80%-plus rate hikes

[Aquawind]

Hey gas prices have gone down!!! Insurance NOTTTTTT..

TALLAHASSEE -- Two insurance companies made their cases today for rate hikes at public hearings that had virtually no consumer representation.

Vanguard Fire and Casualty, which insures nearly 75,000 homes in Florida, seeks 80.7 and 84.1 percent increases for its two home lines.

Companion Insurance has filed for a 23.7 percent increase on some 14,000 resort condominium policies it writes in Florida.

In both cases, the companies blame rising costs for reinsurance, backup coverage for the company to cover potential hurricane losses. In Vanguard's case, reinsurance costs have risen from $18 million in 2005 to $63 million this year.

A lone consumer showed up to question his 172 percent policy increase with Vanguard. "This is way out of line," complained Tallahassee resident Joseph Greiner.

Today's hearings are among more than a dozen scheduled in the next month as regulators try to sort through a crush of requests for large rate hikes, most prompted by steep hikes in reinsurance.

Using a provision in state law that allows insurers to raise their rates before getting state approval, Vanguard stepped up its premiums in May, by an average 67 percent. Regulators are concerned the company's filing for that hike, filed a month later, asks for much more than that.

"Could you tell me why we should not order you to make refunds," asked Ken Ritzenthaler, an actuary with the Office of Insurance Regulation.

Vanguard president William Sanders said his company did not know its final re-insurance bill until after it began its increases. "It's unfortunate," he said, but "the negotiations could not be completed any faster."

Companion, which has not yet implemented its increase, already has reduced its request. It originally filed for a 41.1 percent increase, but after state questioning, dropped that to 23.7 percent, not only statewide but in each of its territories.

The company is not writing any new business in Florida, executives said.

http://www.news-press.com/apps/pbcs.dll ... 08036/1053

[Lindaloo]

Same here in Mississippi. Only difference is this was the state run wind pool. They increased it to 90% for homeowners and 298% for commercial businesses.

All the other chickens just quit writing wind/hail coverage.