Office of Insurance Regulation Public Hearing re Citizens Property Insurance Rate Filing in Monroe County 8/02/06
Jan 14, 2007
Yesterday the Office of Insurance Regulation (the “OIR”) held a public hearing in Key West, Florida, regarding Citizens Property Insurance Corporation’s (“CPIC”) most recent rate filing in Monroe County. CPIC gave a presentation at the beginning of the meeting explaining the data and methodology it used to determine its rates for Monroe County. The presentation included testimony from two private hurricane modeling companies and a company specializing in determining “replacement costs” for homes in the Keys. Additionally, Jack Nicholson, a member of the Florida Commission on Hurricane Loss Projection Methodology (the “Commission”), explained the standards the Commission uses to test and ultimately certify the computer models CPIC used in its rate filing. CPIC averaged the results of three private models and the Public Hurricane Model for its rate filing. The Public Hurricane Model has not been through the evaluation process utilized by the Commission.
The meeting was well attended by local residents and officials, including a group called FIRM (Fair Insurance Rates In Monroe). Many members of FIRM testified, as well as a group of mayors from cities located in Monroe County. Most of the testimony focused on the detrimental impact insurance rates was having on the community, and many residents stated they simply could not afford the premiums and may be forced to move.
Monroe County hired an actuary to analyze CPIC’s rate filing, who ultimately came to the conclusion that CPIC rates should decrease in Monroe County. Monroe County also hired an attorney to analyze the rate filing, who suggested CPIC be forced to only use the Public Hurricane Model. Insurance Consumer Advocate, Steve Burgess, also stated that he did not think the Monroe County rates should increase at all, and CPIC should look at decreasing the rates.
The OIR is expected to make a determination on CPIC’s rate filing within the next two weeks. Should you have any questions or concerns please feel free to contact this office.
Regards,
Fred E. Karlinsky