PCI Responds to Florida Governor’s Statements
In response to comments made by Governor Charlie Crist in the July 3 edition of the "South Florida-Sun Sentinel" regarding insurance rates, the Property Casualty Insurers Association of America (PCI) issued statement below by William Stander, assistant vice president and regional manager for PCI.
"It is important to clarify a comment made by Gov. Charlie Crist today relating to insurance companies’ rate filings. The governor today, as reported in the "South Florida Sun-Sentinel", accused the insurance industry of’ ‘breaking its promises’ and asking the state to assume more risk on its behalf.
"To be clear, the 24-percent rate reduction was never a promise made by the insurance industry. This was an estimate from state officials and regulators who failed to realistically portray the reductions consumers could expect.
"Furthermore, the insurance industry did not ask Gov. Crist or the state of Florida to take on more of a role in the insurance market or assume an increased level of risk. In fact, this decision was made against our recommendations and is seen as a flaw in the current system.
“The only way for the insurance market to work for the homeowners of Florida is to allow the private market to compete on a fair and level playing field. Increasing Citizens Property Insurance Corp. and recklessly forcing more risk upon the state was never advocated for by the insurance industry.
"From the beginning, we warned that the legislative package rushed through in January’s week-long special session would have unintended consequences and would negatively impact the state and homeowners.
"We, too, take promises seriously, which is why we have repeatedly called for a comprehensive insurance solution that not only addresses consumers' demands for affordable rates but also focuses on the long-term stability and solvency of the insurance market in Florida. We have a responsibility to ensure that the industry is stable and can pay its claims when a storm strikes Florida.”
PCI is composed of more than 1,000 member companies, representing the broadest cross-section of insurers of any national trade association. PCI members write over $194 billion in annual premium, 40.1 percent of the nation’s property/casualty insurance. Member companies write 51.3 percent of the U.S. automobile insurance market, 39 percent of the homeowners market, 32.1 percent of the commercial property and liability market, and 38.7 percent of the private workers compensation market.
Published on July 6, 2007
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