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State Farm Isn’t Here

The St. Petersburg Times reports that State Farm Insurance withdrawing from Florida property market

State Farm, the largest private property insurer operating in Florida, filed plans to stop selling property insurance statewide.

The pullout includes insurance coverage for home and condo owners, renters, personal liability, boats, personal articles, and business property and liability. The company will continue to write auto policies, where it is the market leader, and other insurance lines.

Another million home and business owners are going to be applying for the state’s insurance coverage. State Farm and other insurance companies are in trouble because of bad investments, and the policy holders are being tapped to make up the Wall Street losses. These companies aren’t really insurance companies anymore, they are Wall Street gamblers. The policies they write are an excuse to get enough money to feed their addiction.

The entire insurance industry is broken. Governments should just give up on them as a bad idea, and create their own insurance pools. Flood insurance has already been forced upon the Federal government, so they may as well provide full coverage and stop this charade of the “free market”. The insurance industry is only interested in guaranteed profits and no risks.

4 comments

1 cookie jill { 01.27.09 at 10:29 pm }

quite a number of “insurance” companies refuse to give earthquake insurance to homeowners out here…in earthquake country.

Their main objective is to make money…not to give it out.

cookie jill´s last blog post..Fancy Food Trade Show Favorites

2 Bryan { 01.27.09 at 11:10 pm }

They could make money the old fashioned way by rating the risks and charging accordingly, but that requires a lot of extra expense, so they just don’t write policies that have any risk attached.

State Farm decided to quit after their attempt to raise rates 47% was turned down. Apparently they are unaware that property values have plunged, so the risk has been significantly reduced.

3 Steve Bates { 01.29.09 at 12:33 am }

Once, in my childhood, Mad Magazine parodied the State Farm logo. In the three ovals were the words

      You
Can’t Win

Little did I realize back then that the parody was almost too true to be funny.

4 Bryan { 01.29.09 at 12:51 am }

That would be a big seller on the Gulf Coast on a t-shirt or poster.