N.C. Farm Bureau may pull back from homeowner coverage [The News & Observer, Raleigh, N.C.]
By David Ranii, The News & Observer, Raleigh, N.C. | |
McClatchy-Tribune Information Services |
"There will be a point -- and we are on the verge of it right now -- where we have to severely restrict writing (homeowners policies) in
In an interview Friday, Carroll stressed that no decision has been made. He declined to discuss how the company might implement a further pullback from the homeowners market should it decide to do so.
Officials at the state
"I'm very skeptical of the information that was brought forward," she said. "Let's have them show the numbers on paper on the premiums paid versus losses incurred."
Those policies have produced an outcry from consumers across the state who claim it's unfair.
The state
If
Carroll dangled the possibility of a further pullback as part of a plea to legislators to revamp the state's regulatory landscape to permit higher rates. At the same time, however, legislators are getting pushback from coastal counties.
A key issue, Carroll testified, is that state regulators don't give adequate weight to the cost of reinsurance when evaluating the industry's rate requests. Reinsurance is insurance that insurance companies obtain to protect themselves against catastrophic losses.
"The rates we may charge ... are capped by the commissioner," Carroll said. "But the rates we must pay for reinsurance are uncapped."
"To continue to write property insurance the way we have in
Ranii: 919-829-4877
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