House Minority Leader Proposes Insurance Rate Reduction Working Group In Letter to Governor

House Democratic Leader Dan Gelber today sent Governor Charlie Crist the letter copied below about the continued crisis plaguing our state’s property insurance market. The letter urges the Governor to assemble a rate reduction working group comprised of state legislators, the Insurance Consumer Advocate, the Insurance Commissioner and representatives from the CFO’s office to analyze the current state of Florida’s insurance market.

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***Letter to Governor Crist below***

 

July 19, 2007

 

The Honorable Charlie Crist
PL-05 The Capitol
400 South Monroe St.
Tallahassee, FL. 32399-0001

Dear Governor Crist:

I know you share my concern about the state of our property insurance market. During the January special session, the Legislature took a step in the right direction.  In my judgment it was the first “right” step the legislature has taken in all the time I have served.  I believe that your leadership was the reason we were able to actually pass a bill that was aimed at helping consumers rather than insurance companies.  I think, however, you would agree that much more needs to be done, and that we have to guarantee more steps in the right direction.  In a poll released today by Quinnipiac University, Floridians overwhelmingly are saying that they are not witnessing the property insurance rate relief they expected.

I believe we have to be on this crisis 24-7 and must constantly be looking at ways to stabilize Florida’s dysfunctional market.  During this past legislative session we did very little to address long-term reforms for policyholders insured through the private market, and did almost nothing to address property insurance relief for our state’s small businesses.   Most importantly, I think too many policy makers and homeowners are wondering why if the state assumed so much risk are we not experiencing lower rates.

I urge you to immediately assemble a rate reduction working group comprised of state legislators, the Insurance Consumer Advocate, the Insurance Commissioner and representatives from the CFO’s office to analyze the current state of Florida’s insurance market. The purpose of the group should be to determine why Floridians are not witnessing the rate reductions many were expecting as a result of the reforms adopted during the special session.  Additionally, I think they should be promoting more ideas for the legislature to consider.  In many respects, the property insurance crisis is worse than the challenges posed by escalating property taxes because at least homeowners enjoy some protection through Save Our Homes from unexpected tax increases.

Floridians are still, rightfully, storming mad.  I commend you for your commitment, and for your willingness to take on some powerful special interests, but we need to do much more.

Sincerely,

Dan Gelber

Democratic Leader

C:         The Honorable Alex Sink, Chief Financial Officer
            The Honorable Ken Pruitt, Senate President
            The Honorable Marco Rubio, Speaker of the House
            Mr. Kevin McCarty, Insurance Commissioner