Loss-Adjustment Expenses and AOB Remain Issues for Florida-Based Insurance Consumers
JoTo PR Client, COIN Re, was highlighted in a Seeking Alpha article titled, Lower Cost Reinsurance Can Offset AOB-Related Rate Hikes: COIN Re.
COIN Re, a recently launched Florida focused and headquartered property reinsurance broker that has aligned itself with Beach Group, believes that by leveraging a different way of doing business, aligning the needs of the insurance cedant and broker with the ultimate insurance consumer, the costs of reinsurance can be lowered as a result. Currently, Florida-based insurance consumers are facing rate increases due to loss adjustment expenses that have escalated and become inflated, as well as the issues caused by AOB in the state.
The influence these issues have on insurance rates for consumers can be mitigated to a degree by lowering the cost of reinsurance, COIN Re believes. They suspect that insurance rates will rise following the loss adjustment costs and inevitable AOB claims during the 2017 and 2018 hurricanes, hence they’re trying to lower the cost of reinsurance to assist Floridian primary insurers. Lastly, COIN Reinsurance believes that the inevitable escalating rate hikes that hit insurance buyers due to loss adjustment and assignment of benefit (AOB) expenses can be countered by lower cost reinsurance for carriers.
COIN Re was founded in 2018 under the leadership of E.W. “Ted” Blanch. As an innovator spanning decades, after joining E.W. Blanch & Co. in 1958 he became CEO in 1977 and held the position until 2000. The company was sold in 2001. He then formed Ted Blanch & Associates, a consultancy to the reinsurance industry. COIN Re believes in changing the status quo. Catastrophe reinsurance market economics have been tipped in favor of reinsurers, and client/broker interests have been misaligned, ultimately hurting the end user—the consumer. As serial innovators in the market, COIN Re’s principals are aligning client/broker interests by giving insurance companies significant ownership in COIN Re, resulting in market economics tipping back to ceding companies with resultant improved reinsurance program pricing, lowered frictional costs and revenue distribution and equity value accumulation back to the insurance companies—and by doing so, potentially improve property insurance premiums for consumers.The company is headquartered in Tampa, Florida. Visit www.coinreinsurance.com.
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