PCI Urges Market-Oriented Solutions to Florida’s Hurricane Insurance Issues

The Florida Joint Select Committee on Hurricane Insurance, meeting in Tallahassee this week, approved a series of recommendations for the Legislature that broadly affect the state’s property insurance market and specifically addresses hurricane deductibles, the Florida Hurricane Catastrophe Fund and Citizens Property Insurance Corp.

The Legislature formed the Joint Select Committee to more fully study the availability and affordability aspects of property insurance that could not adequately be addressed during the special legislative session in December of 2004.

“The Property Casualty Insurers Association of America is committed to working with lawmakers and helping develop viable solutions to the substantial challenges facing the property insurance marketplace,” William Stander, PCI regional manager said.

The 2004 hurricane season was unprecedented. As of Feb. 3, the Office of Insurance Regulation reported that 1.6 million property insurance claims had been filed and insurers had paid $13.9 million in total claims payments. It is estimated that the overall losses will reach $21 billion.

“We want to make certain that consumers continue to have a large number of insurance companies competing for business, and that the state’s insurance market and economy remain robust and healthy,” Stander said. “As legislators move forward, PCI urges them to keep in mind that proposals which unduly restrict how insurers choose to conduct their business will ultimately restrict consumer choice.

“The best way for policymakers to expand consumer choice regarding deductibles, rates and insurance products is to enhance competition in the marketplace,” he said. “By encouraging competition, Florida will attract much-needed capital from a broader range of companies, and the marketplace will respond by providing consumers with more options. If, on the other hand, legislators expand government and rely on the police powers of the state to micromanage the marketplace, unintended negative consequences may occur.”

Topics Florida Catastrophe Natural Disasters Hurricane Property