Insurer Group Refutes Fla. Gov. Crist’s Claim of ‘Broken Promises’

Insurance companies have taken exception to a reported accusation by Florida Gov. Charlie Crist that the insurance industry has broken its promises to lower rates and help restore the state’s private property insurance market.

In the July 3, 2007 edition of the South Florida Sun-Sentinel, Crist is quoted as saying he is disappointed with property/ casualty insurers regarding insurance rates. In the story, the governor accused the insurance industry of “breaking its promises” and suggested that the industry was behind asking the state to assume more risk on its behalf.

The Property Casualty Insurers Association of America (PCI) didn’t like that and shot back with a statement from William Stander, assistant vice president and regional manager for PCI.

“To be clear, the 24-percent rate reduction was never a promise made by the insurance industry. This was an estimate from state officials and regulators who failed to realistically portray the reductions consumers could expect,” Stander responded.

“Furthermore, the insurance industry did not ask Gov. Crist or the state of Florida to take on more of a role in the insurance market or assume an increased level of risk. In fact, this decision was made against our recommendations and is seen as a flaw in the current system.”

Stander insisted that the only way for the insurance market to work for the homeowners of Florida is to allow the private market to compete on a fair and level playing field. “Increasing Citizens Property Insurance Corp. and recklessly forcing more risk upon the state was never advocated for by the insurance industry,” he pointed out.

“From the beginning, we warned that the legislative package rushed through in January’s week-long special session would have unintended consequences and would negatively impact the state and homeowner,” he added.

He vowed that the industry takes promises seriously, which is why it has called for a “comprehensive insurance solution that not only addresses consumers’ demands for affordable rates but also focuses on the long-term stability and solvency of the insurance market in Florida.”

Source: PCI

Topics Florida Carriers Market