Farmers Insurance Exchange, a reciprocal insurance branch of the Farmers Insurance Group, is looking to raise homeowner’s insurance rates in Louisiana. The insurer has approached state regulators seeking approval for rate increases that would affect thousands of residents throughout the country. The Louisiana Department of Insurance is currently investigating the rate proposal. Regulators have not yet issued a preliminary report on whether the rate proposal seems excessive or not. The state is currently determining how the potential rate increase will affect consumers and the overall economy of Louisiana. The insurer…
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Insurers pulling out of markets in the wake of natural disasters
The natural disaster rate climbs as industry reevaluates high risk areas. Natural disasters seem to be happening more regularly, a fact that the global insurance industry is becoming uncomfortable with. In terms of insurance, powerful storms and weather-related catastrophes are becoming more commonplace. As such, insurers are feeling the pressure of increased liability and the potential for steep financial losses in the wake of a catastrophic event. There is a strange trend gaining momentum in the industry today, which is spurred by the severity of recent natural disasters. Insurance markets…
Read MoreChina to strengthen regulations for growing insurance industry
Major changes for China insurance industry. The insurance industry in China is growing at a rapid rate. The country recently opened up its borders to foreign insurers looking to expand into new markets and this initiative has been quite successful. As more insurance companies enter the Chinese market, however, regulators are growing concerned over their ability to comply with the country’s laws and expectations. These concerns have grown too large to ignore any longer and the China Regulatory Commission has announced that it will be strengthening the supervision of the…
Read MoreClimate Prediction Center heralds the return of El Nino this year
Insurance industry on El Nino watch. The U.S. Climate Prediction Center (CPC), a government agency that provides weather information to the insurance industry and others, has raised concerns that El Nino may make a strong return to the Northern Hemisphere later this year. The weather phenomenon is notorious for the number of natural disasters it spawns throughout the Northern Hemisphere. El Nino brings an increase in rainfall and changes to temperature and wind patterns in some parts of the world. The CPC notes that El Nino could have a disastrous…
Read MoreForce-placed coverage causes probe of New York insurance companies
A closer look into forced placed insurance practices The state insurance regulator in New York is currently performing an investigation as to whether or not the rates for force-placed insurance that are being charged by companies should be deemed excessive, and is requesting data from insurers such as Assurant Inc. The New York Department of Financial Services released a statement that said that it is trying to obtain basis for “consistently high profits” that are occurring at the investors’ and homeowners’ expense. It is also requiring that insurers such as…
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