Florida's Office of Insurance Regulation Issues Subpoenas

Insurance reforms enacted last winter were supposed to provide homeowners in Florida with lower premium payments. In many cases this has not taken place. One provision of the reforms allowed the companies to have easier and cheaper access to reinsurance from the state. This is less costly than buying it on the private back-up insurance market. In return for buying cheaper reinsurance, the companies were supposed to pass the savings on to consumers. However, now many companies are asking the state to approve increases!

Very recently Allstate Floridian asked for a 41.9% increase and Allstate Florida Indemnity asked for 28.3%.

The state's Office of Insurance Regulation has issued subpoenas to the Allstate Insurance companies operating in Florida, as well as Cincinatti Insurance and Cincinatti Indemnity to find out why predicted savings have not materialized. Both Cincinatti companies asked for an average 37.5% increase.

The state regulators would also like to learn any insurance companies are in anyway working together to get-around the reforms that were enacted.

It was noted that several smaller companies based in Florida have complied with the laws and have lowered their rates. It appears that it is the bigger companies that feel they do not have to play by the rules.

And so the seemingly never-ending insurance saga continues.