Well, this should add more fuel to the Florida homeowners/property insurance fuss. From Insurance Journal:
Citizens’ actuarial and underwriting committee members agreed last week to recommend that it seek the rate increase to comply with new requirements in state law about how the company sets its rates.
The change would result in a rate increase of 55.8 percent for wind-only policies next year. People with full homeowners policies would also see increases, but they would be less than 10 percent on average.
The proposed increases would be on top of the 25.9 percent increase on average that Citizens is already set to collect starting Jan. 1.
I can’t help but wonder how long it will be before other parts of the state (beyond the Keys, where this has already happened) are found to have no competitive market, and thus Citizens is obliged to charge based on prospective loss costs rather than the higher-than-market rule.