For folks who have been staying at least semi-aware of the property insurance circus in Florida, it doesn’t contain any particularly new information….but for folks who have been out of the loop, the Washington Post has run an article summarizing the Florida insurance debate to date:
Last year’s legislation saved insurers money because the state assumed billions more of the hurricane risk. But the savings that were supposed to be passed on to consumers have fallen far short of expectations. In fact, some major companies have proposed price increases.
Now with Crist and lawmakers evincing a sense of betrayal, a battle has erupted between the politicians and the industry over what went wrong—and what Florida should do next about the crush of insurance costs.
In recent weeks, Crist has hired three private lawyers to look into the possibility of a class-action lawsuit against insurers. State regulators subpoenaed records from insurance companies. Insurance Commissioner Kevin McCarty prohibited Allstate from writing new policies until it complies, though that order was suspended Friday by a court ruling. Meanwhile, Florida Senate leaders said they would call for testimony from the executives of leading insurers. [...]
The new prices, insurers say, reflect the daunting challenges of providing coverage in this hurricane-prone state after billion-dollar disasters such as Katrina, Rita and Wilma. Industry groups insist they never promised a big price cut after the legislation.
They blame politicians. The promised price cut, they suggest, was campaign rhetoric.
I wouldn’t be surprised to see the topic of Florida’s property insurance woes grow in national prominence over the next week, perhaps starting after Thursday night’s debate, with Giuliani trying to elevate it to “issue” status as he tries to salvage his Florida-first strategy.
