OIR Public Rate Hearing: Florida Farm Bureau

On Tuesday, July 10, 2007, this office attended a public hearing for a rate filing submitted by the Florida Farm Bureau.  

The Florida Farm Bureau requested a 30.3 percent statewide average rate increase for its homeowners’ business. 

Florida Office of Insurance Regulation (“OIR”) officials in attendance were Steve Parton, General Counsel; Belinda Miller, Deputy Commissioner; Michael Milnes, Deputy Director; Robert Lee, Actuary; and Khai Patterson, Senior Attorney.

After brief introductory remarks from the OIR, Florida Farm Bureau representatives presented their rationale for seeking the rate increase, citing reinsurance contracts as a contributory reason.

The OIR questioned the Florida Farm Bureau representatives about how their reinsurance contacts were set, and whether their rates were being set in a manner that would provide relief to policyholders based on the increased capacity of the Florida Hurricane Catastrophe Fund (“FHCF”). 

The Florida Farm Bureau representatives responded by stating that the FHCF capacity increase allowed reinsurance up to a 1-in-250 year probability event, and that prior to the FHCF increase, that level of coverage was unable to be achieved. 

Following a presentation by the Florida Insurance Consumer Advocate’s office and further questions to the Florida Farm Bureau, the meeting adjourned. 

The OIR officials indicated that they will take the comments from this hearing into consideration and make a determination in the near future on whether to approve Florida Farm Bureau’s request for a statewide rate increase. 

We have attached a copy of the agenda for your review. 

Please feel free to contact this office should you have any questions regarding this matter.