Playing Politics with the Industry

You are probably wondering just what in the world Florida Governor Jeb Bush is doing on the cover of the current issue of Insurance Journal.

The editorial department has talked numerous times in recent months about reaching out to and landing interviews with not just insurance commissioners and industry experts, but congressmen, senators, governors, etc. Our reasoning is that these men and women, in positions of authority, obviously can and do have an impact on workers’ compensation, medical malpractice, homeowners insurance, and much, much more that affects both agents and policyholders.

In Florida, Bush earlier this summer signed a reform bill involving the state’s workers’ comp system. The Florida Office of Insurance Regulation recently approved the revised workers’ compensation rates filed by the National Council on Compensation Insurance (NCCI), in response to an order by OIR Director Kevin McCarty. McCarty insisted on rate revisions that reflect the impact of legislative reforms to the state’s workers’ comp system.

The approved filing is expected to result in an average rate decrease of 14 percent and will apply to new and renewal coverage beginning Oct. 1, 2003. The reduced rates will be applied to existing policies, on a pro-rata basis, between Oct. 1 and the renewal date. NCCI reports the rate decrease will result in an annual savings of $420 million in workers’ comp costs. According to McCarty, “This completes one of the great accomplishments of this year’s legislative session. Florida’s employers asked for workers’ compensation reform that would bring about rate relief, and Gov. Bush and the Legislature responded.”

Gov. Bush’s work on workers’ comp reforms is just one example nationwide of politicians—listening to concerns and working to improve conditions.

In his interview with Insurance Journal, Bush also discusses state vs. federal regulation, addressing property claims, keeping insurance companies and other businesses in the state and welcoming new ones, and what he has learned from his family when it comes to governing.

Also in this issue, staff writer Kevin O’Reilly takes a look at the latest goings-on in the excess and surplus lines industry. There appears to be continued work for E&S carriers, and O’Reilly looks at some of the recent trends and where the market is likely to go in the coming months and year.

Finally, the race for governor in California will only continue to get more interesting as voters head to the polls in just about a month—Oct. 7. State Senator Tom McClintock takes time out from the campaign trail to discuss why he should be California’s next governor.

Those topics, along with stories on risk retention groups, workers’ comp, fighting fraud, and much more fill out this issue.

Share your thoughts with us by e-mailing me at dthomas@insurancejournal.com.

Topics Florida Workers' Compensation