This could be a huge probem come H'cane season

[Aslkahuna]

First, moving to Mexico isn't all that easy. Didn't they have some bad fires in Central America and southern Mexico a few years ago that sent great quantities of smoke into the US? Also, Central America most assuredly does get earthquakes like California (in fact Guatemala has had some beauts) along with volcanoes and landslides (which I imagine that you would certainly wish to avoid a repeat of Stan from last year). Just a query though, is your area like the Philippines where slides are a result of illegal logging and slash and burn land clearing? If so, then your problems are only going to worsen over the next years as the high activity cycle continues. BTW Alicia, great comment and observation about Mexico vis-a-vis the US.

Steve

[GeneratorPower]

With the current active cycle likely to continue for another 20 or more years, and with so many people now living in vulerable coastal zones, I don't see how any insurance company will be able to stay in business.

They must raise rates, that's how. It's simple. Insurers set rates based upon the likelyhood that disaster will strike. They also have limits as far as what they can handle. Apparently the companies that are pulling out cannot withstand another whopper hurricane without going bankrupt.

If disaster keeps striking, insurance costs must and will go up. When they go too high, people will either forego insurance or choose not to build in high-risk places.

This is the beauty of economics.

[Audrey2Katrina]

Yup! My insurer is Horace Mann, which is a great company that gives teachers unbeatable rates--unfortunately, after Katrina, they have stopped writing ANY policies for this area...

A2K

[T'Bonz]

Sadly, its all about money

You realize that insurance companies are in business not as a public service but to make money, right? They can't stay in business unless they take in significantly more money from policy holders than they pay out. With the current active cycle likely to continue for another 20 or more years, and with so many people now living in vulerable coastal zones, I don't see how any insurance company will be able to stay in business.

The sound you hear is the world's smallest violin. They've been collecting our premiums (and I'm in prime hurricane hit territory) for 20+ years. They've made money hand over fist.

Part of their "business" is planning/anticipating payouts, not assuming that the gravytrain will last forever.

I feel that companies that pull out after years of profits after 2 years should be banned from practicing throughout the U.S. I'm not in the business of making profits for an insurance company any more than they're in the business of feeling sorry for me.

They need to manage their businesses better. And as I said, part of that is planning for the payouts.

[vbhoutex]

Although I agree with your sentiments T'bonz, how do you plan for payouts in the billions and billions of dollars???

[CajunMama]

This is in regards to some earlier posts...remember the thread about respecting other members? Some would do well to heed that advice.