State Farm halts new insurance in Mississippi (Reuters)

[Eugene]

State Farm halts new insurance in Mississippi
Wed Feb 14, 2007 3:24PM EST

By Ed Leefeldt

NEW YORK (Reuters) - State Farm Mutual Automobile Insurance Co. said it will stop writing
new homeowner and commercial insurance in Mississippi following a legal battle over damage
claims there from 2005's Hurricane Katrina.

"It is no longer prudent for us to take on additional risk in a legal and business environment
that is becoming more unpredictable," Bob Trippel, senior vice president of the largest home
insurer in the United States, said in a statement.

State Farm joins other insurers -- including Allstate Corp., its biggest national competitor
-- who are cutting back in coastal areas. Among them are American International Group
Inc., the world's largest insurer, and Nationwide Mutual, the parent company of Nationwide
Financial Services Inc..

-snip-

State Farm currently insures more than 30 percent of the homeowners in Mississippi. It said it
would continue to serve current policyholders and write new auto insurance business. But it left
open the possibility of nonrenewals if the situation got worse.

-snip-

Full article: http://www.reuters.com/article/domesticNews/idUSN1435396020070214

[Broken_Hero]

1. Yep, I just heard that on NBC Nightly news

sounds like a lot of the homeowners down in that region are having one hell of a time with their insurance providers.

[ohioINC]

2. Global Warming?

In a few years, no insurance companies will offer coverage in coastal regions. Intense and unprecedented storms are going to occur frequently in the near future.

[muntrv]

3. What is State Farm doing in the insurance business if they are not going to

insure homeowners and pay out claims?

[SharonAnn]

8. They want to just collect the money. Not pay it out.

[RB TexLa]

4. No insurers have to sell in all states

The list that don't sell in Louisiana is a mile long.

[HCE SuiGeneris]

5. And like a good neighbor ,,,, Skate Farm is

there?
:shrug:

[Clark2008]

6. Hubby writes home insurance policies and Travelers

hasn't written policies for the coasts in years.

It looks like, of all corporations, the insurance industry would be helping to educate folks about global warming. Look - the are losing money if they write the policies when a disaster hits and they lose money by not being able to write the policies if they have to close off entire regions as uninsurable. Either way, they lose.

As a rule, I don't defend insurance companies and neither does my husband, but, in this instance, I don't understand why the insurance companies don't start funding climate change education (he works in the industry. He knows it's a racket, but it's a good and necessary job for him. If we found a way to get around insurance in this country, he'd find another good sales position because he's good at sales).

[Acadia Blue]

7. Damn State Farm, Damn them.

[dipsydoodle]

9. Simple fact of life

Insurance companies cover the risk of an event. When it becomes almost a certainty it becomes uninsurable other than at absurd rates. Didn't similar events occur on the Gulf Coast of FL in the eighties with regard to hurricane flood damage ?