THE NEWS SERVICE OF FLORIDA: AIF Criticizes Citizens Decision
Nov 23, 2009
THE NEWS SERVICE OF FLORIDA published this article on November 23, 2009
One of the state’s largest business lobbies is taking issue with the decision by state regulators on how much to allow Citizens Property Insurance to increase its rates for policy holders in high risk areas.
The head of Associated Industries of Florida, which has pushed for a 10 percent across the board rate increase for the last-resort property insurer, said the rate increase of just over 5 percent on average for customers in Citizens’ high risk account won’t allow the company to rebuild its coffers to be able to pay claims.
AIF President Barney Bishop said the Office of Insurance Regulation should have allowed a 10 percent hike – the most that would have been allowed under law. “Citizens’ rates have been frozen for the past five years and the nominal 10-percent increase called for in this year’s legislation was a fair and reasonable first step toward Citizens becoming actuarially sound,” Bishop said.
“Insurance Commissioner (Kevin) McCarty once again showed that he clearly has no regard for the potential impacts on the Florida businesses that will be forced to cover the cost of Citizens’ claims should a major storm hit our state.”