Florida Insurers Not Giving The Reductions That Had Been Expected

Last winter in a special session of the Florida legislature, certain reforms were put in place that were supposed to offer policy holders some relief from the huge premium increases that we had been experiencing in the past years.

It is now being reported by the state that the property insurance rates have not dropped as much as they were supposed to. My own policy remained unchanged from last year. $1,700 for a home of less than 800 square feet!

One cause is that the companies are raising their profit rates. Another factor is that the companies are not passing on to consumers the savings they are reaping from their ability to buy cheaper re-insurance from the state or other companies. The legislature had said that any money that was saved due to this ability was to be used to cut rates to customers. Apparently this is not happening.

A spokesman for the Consumer Federation of America said that the smaller companies and those based in Florida seemed to be doing a better job of reducing their premiums. It appears that it is the large companies that cannot seem to give up their greedy ways and are looking for ways to get around the new legislation. This same spokesman went on to say that the insurance companies nationwide made $525 for every man, woman, and child in the United States during the past 3 years, even after paying off the large claims from hurricane damage. Does that sound like the companies are headed for bankruptcy? It sure doesn't to me.

By September 30, all insurance companies are to submit "true-up" filings, but so far only about one-third have done so. Surprise, surprise!

I am not sure we are going to see any true reform in this area in the near future. I think it is going to take a lot of pressure from the citizenry of the state to pressure Tallahassee to get off its proverbial behind and create some laws that have some teeth in them. Some of the companies are behaving like spoiled brats and it is about time their ears got boxed. On the other side, it would be great to see some of the smaller and local companies who are adhering to the law get some rewards for their efforts. At least some recognition by the state would be a start.

In any case, it would not hurt for you to let your state legislators and the governor know what you think about this apparent fiasco.

For more information or questions about this topic please call me at: 813-783-4444 or e-mail me at: jelwell1@tampabay.rr.com

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