The Mack Group Newsletter

Say goodbye to 2007

2007 was a wild year for the insurance industry in Florida. 20 plus hurricanes were going to get us, and none did! The politicians, hoping to bolster their re-elections campaigns, started demanding that insurance companies lower their rates. I don't know about you, but I know that I do not want the government telling me how to run my business. (It is upsetting enough when my wife tells me how). Further, running an insurance company is one of the more difficult businesses to run. For instance, they don't use regular accounting rules. They have all kinds of accountants and actuaries on staff to try to figure out how to account for a dollar of premium that they take in. It is not like my business or a restaurant. We get a dollar and it pays for the expenses we incur at that time. No, an insurance company gets a dollar, and that dollar pays for the expenses at that time, plus the future claims that may occur. It may be the summer hurricane. It may be a fire next month or a flood in three months. It may be a slip and fall on Halloween. It may be a product defect that happens 5 years from now.

The possibilities of how that dollar will be spent are numerous. And yet, these politicians, who know nothing or very little about how insurance companies run, are demanding for rate decreases. Maybe that is how they spent all the property tax increase money since 2001, when homes valued at $200,000 started selling at $500,000 and thus increasing the tax base. They spent the money on Crystal Balls and Tarot Card Readers so they can accurately predict what the future claims will be for the insurance companies in South Florida.

While the politicians have really done nothing for the insurance market in South Florida, other than cause more customers to move to Citizens Insurance Company, the market has slowly began to lower premiums through better pricing for the better built homes. There are special inspections that can be done that will earn you credits for your home insurance. We are advising our clients to have these inspections done to lower their insurance costs. I hope your agent is too.

Mack Associates took on two challenges to help others in the past few months. At Thanksgiving, blankets and warm clothing were collected for The Broward Homeless Shelter so that as the weather turned colder those who didn't have a home could keep warm. Dee Dunge, a Mack employee and volunteer at the shelter, brought car loads of items from The Mack Group to the shelter.

At the Mack Holiday Party in December, Mack Associates donated toys which were brought the to Women in Distress Center, an outreach for abused women in Broward County.
Pat Purtell and Robenson Juste delivered a huge cart of toys, including a bike, to the facility in Ft. Lauderdale. Women at the shelter were able to "shop" for their children free of charge and have gifts to give them to celebrate the holiday.

Athena S. Davis is the Senior Benefits Advisor for The Mack Group Inc. She has worked in the financial industry since 2000 when she obtained her licenses which include Life/Annuity and Health, Series 7 Securities License and recently earned her designation as Certified Senior Advisor.
Athena brings a diversified background that helps businesses to create a strategic benefits package for their employees. Corporate benefit packages cover major medical, retirement, dental, disability, life, long term care and an array of voluntary offerings.
Athena grew up in Ft. Lauderdale and has strong roots to the South Florida area. She lives in Boca Raton with her husband of a year and a half. Her hobbies include spending time with family and friends, working out. Her perfect day off is a day at the beach, after all, we live in South Florida!

adavis@mackinsurance.com