Seen in Insurance Journal:
Florida officials have subpoenaed Allstate Insurance and its subsidiaries to get the insurer to explain why it is not lowering homeowners insurance rates in the state and to defend its dealings with the industry’s risk modeling and rating organizations.[...]
“The legislation enacted in January was very specific about its requirement that insurers reduce the rates they are charging for homeowners insurance,” said [Florida Insurance Commissioner] McCarty. “We are continuing to investigate those companies that appear to be ignoring the intent of the legislature in its efforts to reduce premiums to consumers, and we want to hear the reasons behind those companies’ actions.”
It’s a shame that the interpretation of the law doesn’t apparently permit the possibility that rates may have been inadequate to begin with, that there is more involved in risk-loading rates on cat-prone business than simply looking at the availability of allegedly cheap reinsurance, and that consideration of the potential recoverability of future reinsurance claims might affect an insurer’s opinion on such cover.