How stupid do you think consumers are? Publishing an article that tries to legitimize the false equivalence of a purportedly improving market with astronomical and unprecedented premium increases is at best an oxymoron and at worst (and most likely) Insurance company propaganda. Just stop with your nonsense already.
IMO the revamped Depop platform is the real game-changer here. The Takeout Orders will make more noise, but a more user-friendly Clearinghouse platform is what will drive depop results. It’s a poorly kept secret that some Agents avoid Citizens at all cost due to complications placing/maintaining biz with them.
How much do companies like Slide get “paid” per policy they assume from Citizens? I think that should be mentioned in the article. Or CPIC agrees to handle the losses through a certain period? There are other provisions that make takeouts favorable for insurance companies that aren’t mentioned here.
Also, Bruce Lucas has made a career out of takeout business. See Heritage Property.
Yes, there are favorable provisions omitted, but there are also unfavorable, hidden costs omitted as well. Notably, the higher reinsurance costs associated with assuming risks from the higher-risk segments of the market typically covered by Citizens. These favorable provisions like the per policy assumption bonus and the temporary LAE reimbursement provisions are designed to blunt these higher costs. Exceptions may be made for normal Underwriting standards, etc etc.
You aren’t wrong about Bruce Lucas’ history with takeout business though.
Please note that the article mentions that no bonuses were paid to the takeout companies, despite state law that allows that.
“The consent order did not indicate the dollar amount of premium that Slide will inherit on the assumed policies. Although Florida law allows Citizens to pay a bonus to insurers as an incentive to assume Citizens policies, as much as $100 per policy, the July 31 consent order notes that no incentives will be paid in this case.”
And the article mentions Heritage’s big 2012 takeout.
Interesting that Mr. Lucas also was involved in the start of Heritage. Which also took a lot of takeouts from Citizen’s when they began. Now the new company Slide is getting a boost also form Citizens take out. By the way both companies are the same building
How stupid do you think consumers are? Publishing an article that tries to legitimize the false equivalence of a purportedly improving market with astronomical and unprecedented premium increases is at best an oxymoron and at worst (and most likely) Insurance company propaganda. Just stop with your nonsense already.
So far, the take up rate of those takeouts is less than 20%.
IMO the revamped Depop platform is the real game-changer here. The Takeout Orders will make more noise, but a more user-friendly Clearinghouse platform is what will drive depop results. It’s a poorly kept secret that some Agents avoid Citizens at all cost due to complications placing/maintaining biz with them.
How much do companies like Slide get “paid” per policy they assume from Citizens? I think that should be mentioned in the article. Or CPIC agrees to handle the losses through a certain period? There are other provisions that make takeouts favorable for insurance companies that aren’t mentioned here.
Also, Bruce Lucas has made a career out of takeout business. See Heritage Property.
Yes, there are favorable provisions omitted, but there are also unfavorable, hidden costs omitted as well. Notably, the higher reinsurance costs associated with assuming risks from the higher-risk segments of the market typically covered by Citizens. These favorable provisions like the per policy assumption bonus and the temporary LAE reimbursement provisions are designed to blunt these higher costs. Exceptions may be made for normal Underwriting standards, etc etc.
You aren’t wrong about Bruce Lucas’ history with takeout business though.
Please note that the article mentions that no bonuses were paid to the takeout companies, despite state law that allows that.
“The consent order did not indicate the dollar amount of premium that Slide will inherit on the assumed policies. Although Florida law allows Citizens to pay a bonus to insurers as an incentive to assume Citizens policies, as much as $100 per policy, the July 31 consent order notes that no incentives will be paid in this case.”
And the article mentions Heritage’s big 2012 takeout.
Great point – thank you for pointing this out Rabb
Interesting that Mr. Lucas also was involved in the start of Heritage. Which also took a lot of takeouts from Citizen’s when they began. Now the new company Slide is getting a boost also form Citizens take out. By the way both companies are the same building
I think Slide Is biting off more than it can chew!