Homeowners Insurance Loss Ratio Chart

In reference to the following published by Florida Today newspaper, I received the following question. I’m no longer licensed as an insurance agent, so I can’t give personal advice on insurance, but I’ll go ahead and comment on the general issues if it might be helpful for those looking for some direction on these issues.

Here’s the original email I received:

The chart that appeared in FLORIDA TODAY last Sunday, 8/5/07, deserves some analysis. I am no expert. I wish one would step forward. Until one does, here are my observations:

1) This chart cuts to the chase. It simply shows the ratio of claims paid to premiums collected. It’s very basic and uncluttered with things like re-insurance (whatever that is) or overhead.