Devoted to the Insurance industry and all thing related

The new governor of Florida, Charlie Crist has started off his first term by having a field day with the property-casualty insurance industry.  A recent statement from Crist according to National Underwriter was “that Florida is ‘operating now on a level playing field where the consumer’s rights are being heard, too, for the first time in a long time,’ and an expression of scorn for insurers who exit the state.”

There have been some legislative changes in Florida regarding the property-casualty industry including “banning future Florida-only insurer subsidiaries and changing rules for coverage by Citizens, the state-created carrier, which creates an actuarially unsound situation, according to the state’s chief financial officer.”

While much of the insurance industry has been relatively quiet there are a few organizations not afraid to speak out.  The senior vice president for the Property Casualty Insurers Association of America, Joseph Annotti said:

“Casting insurers as the sole reason for Florida's property insurance problems is inaccurate and unfair,” he said. “We would like to see the political rhetoric toned down so that we can work with the governor and the legislature on meaningful ways to address the fundamental problems facing the Florida insurance market.”

 

In addition Robert P. Hartwig, president of the Insurance Information Institute said:

“The governor’s feistiness seems to have morphed into an unwarranted cockiness that he will soon regret. While the governor is bashing insurance companies.  Mother Nature is prepared to deliver a financial comeuppance to the state. Competition means that in the long run you cover your costs.  Citizens has not done that historically and seems even less likely to do so in the future.”

Do you think Crist is being too harsh or unreasonable by laying so much blame on the laps of P&C insurers?