Editorial: Bill worsens insurance
Jun 2, 2011
The following article was published in the Key West Citizen on June 2, 2011:
Bill Worsens Insurance
The sweeping property insurance bill Gov. Rick Scott signed not only fails to provide relief for Florida’s beleaguered ratepayers — it may make matters worse for them. …
Reinsurance is a standard feature of the insurance industry, a conventional way for companies to hedge their bets by covering their own risk. …
Many of these firms are located offshore, beyond the reach of regulators. Their premiums are as high as the market can take. Scott says the legislation encourages competition that gives consumers more choices, but the record shows that thinly capitalized insurance companies lured by the prospect of easy profits don’t help consumers at all. …
The law signed by Scott explicitly allowing a new round of rate hikes justified by higher reinsurance costs is an invitation to let insurance companies take advantage of a wide regulatory loophole, even though there is no apparent need for it.
Find this article here: http://keysnews.com/node/32280