CRIST PUTS FOOT DOWN ON INSURERS
The ink is barely dry on the transfer of power paperwork in Tallahassee and the insurance shake-up has begun. Gov.Crist has taken the issue to task and come out swinging the proverbial axe towards the insurance companies that have raked homeowners, throughout the state, over the coals. It's good to see a hardline, proactive stance favoring the general public and it would seem the issue is in good hands from the consumer prespective. Kudos to the new administration for heading straight to the heart of a very contentious matter. Here's the latest on the insurance fiasco of Florida...
TALLAHASSEE (AP) - Floridians' property insurance rates must go down - even if it means the state will have a greatly expanded role in providing the coverage, Gov. Charlie Crist said Thursday as he endorsed several ideas lawmakers are already working on to fix the state's insurance woes. Crist didn't propose specific legislation, but laid out broad goals for what he wants lawmakers to do when they meet in a special session next week. "Any bill that reaches my desk must require a meaningful and broad-based rate reduction for homeowners," Crist said. "And I believe it will, from what I've seen."
Crist was speaking of a wideranging array of lawmaker proposals. They include extending more backup coverage to private insurers; required rate rollbacks for the state's largest insurer, Citizens Property Insurance Corp.; and prohibiting companies from selling some types of insurance but refusing to sell wind coverage. All the ideas Crist endorsed are already being considered by either the House, the Senate or both.
Crist also made it clear that he isn't trying too hard to find a way for insurance companies to come out of the session happy. "We must prohibit excess profits by these companies," said Crist, a Republican taking on his first major challenge as governor. 'We must require them to return those excessive profits to the policy holders." He campaigned on bringing down premiums that have doubled or tripled after eight hurricanes affected Florida in 2004 and 2005. Rate decreases didn't accompany a quiet 2006 storm season, sparking widespread complaints from homeowners and businesses who are struggling to pay for coverage or find it.
Crist also said he wants to dramatically expand the role the state plays in insurance. For one, Crist envisions making the state the ultimate underwriter of all risk above a certain catastrophic amount, an idea initially proposed by Senate Democrats. Under that proposal, which is being included in a bill the Senate is working on, state government would guarantee that it would pay claims in the event of a major storm, like a Hurricane Andrew or Katrina, that causes tens of billions of dollars in damage. That should make companies more willing to sell policies here because they will know they won't be on the hook should there be a massive storm. "The more we define the exposure, the more companies come back," said Sen. Dan Webster, R-Winter Park. And companies wouldn't have to factor the prospect of a huge storm into premiums, backers of the idea say.
Crist also believes the state should take over more of a role from private insurers by expanding the role of Citizens, a company the state created to sell wind policies to people who can't find private coverage. It has grown to be the largest insurer in the state with more than 1.3 million policies. Crist said the company should be able to cover things besides wind damage, thus building a broader premium base. He also backs plans to automatically roll back one recent Citizens rate increase and delay another, keeping the company's rates at last year's levels.
Typically, Republicans have been loathe to endorse a broader role for government in providing services, generally saying that private companies almost always do a better job at everything. But asked about whether Republicans were abandoning their principles, Webster said another conservative principle - that private homeownership is a good thing - is at risk if something isn't done to lower rates. Insurance companies say they lost more than $35 billion in Florida in the hurricane seasons of 2004 and 2005 - and that they've generally only pulled in less than $5 billion a year in premiums, meaning those two seasons wiped out years of profits.
Northwest Florida Daily News
TALLAHASSEE (AP) - Floridians' property insurance rates must go down - even if it means the state will have a greatly expanded role in providing the coverage, Gov. Charlie Crist said Thursday as he endorsed several ideas lawmakers are already working on to fix the state's insurance woes. Crist didn't propose specific legislation, but laid out broad goals for what he wants lawmakers to do when they meet in a special session next week. "Any bill that reaches my desk must require a meaningful and broad-based rate reduction for homeowners," Crist said. "And I believe it will, from what I've seen."
Crist was speaking of a wideranging array of lawmaker proposals. They include extending more backup coverage to private insurers; required rate rollbacks for the state's largest insurer, Citizens Property Insurance Corp.; and prohibiting companies from selling some types of insurance but refusing to sell wind coverage. All the ideas Crist endorsed are already being considered by either the House, the Senate or both.
Crist also made it clear that he isn't trying too hard to find a way for insurance companies to come out of the session happy. "We must prohibit excess profits by these companies," said Crist, a Republican taking on his first major challenge as governor. 'We must require them to return those excessive profits to the policy holders." He campaigned on bringing down premiums that have doubled or tripled after eight hurricanes affected Florida in 2004 and 2005. Rate decreases didn't accompany a quiet 2006 storm season, sparking widespread complaints from homeowners and businesses who are struggling to pay for coverage or find it.
Crist also said he wants to dramatically expand the role the state plays in insurance. For one, Crist envisions making the state the ultimate underwriter of all risk above a certain catastrophic amount, an idea initially proposed by Senate Democrats. Under that proposal, which is being included in a bill the Senate is working on, state government would guarantee that it would pay claims in the event of a major storm, like a Hurricane Andrew or Katrina, that causes tens of billions of dollars in damage. That should make companies more willing to sell policies here because they will know they won't be on the hook should there be a massive storm. "The more we define the exposure, the more companies come back," said Sen. Dan Webster, R-Winter Park. And companies wouldn't have to factor the prospect of a huge storm into premiums, backers of the idea say.
Crist also believes the state should take over more of a role from private insurers by expanding the role of Citizens, a company the state created to sell wind policies to people who can't find private coverage. It has grown to be the largest insurer in the state with more than 1.3 million policies. Crist said the company should be able to cover things besides wind damage, thus building a broader premium base. He also backs plans to automatically roll back one recent Citizens rate increase and delay another, keeping the company's rates at last year's levels.
Typically, Republicans have been loathe to endorse a broader role for government in providing services, generally saying that private companies almost always do a better job at everything. But asked about whether Republicans were abandoning their principles, Webster said another conservative principle - that private homeownership is a good thing - is at risk if something isn't done to lower rates. Insurance companies say they lost more than $35 billion in Florida in the hurricane seasons of 2004 and 2005 - and that they've generally only pulled in less than $5 billion a year in premiums, meaning those two seasons wiped out years of profits.
Northwest Florida Daily News
posted by Mark Evans at 4:29 PM
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