Property insurers’ breaking point
Published: Thursday, March 18, 2010 at 1:00 a.m.
Last Modified: Wednesday, March 17, 2010 at 9:06 p.m.
In response to “How insurers make millions on the side:”
The unfortunate truth is that during the past several years, government has passed laws and pursued a regulatory environment that has pushed the property insurance market to the breaking point. Undeniably, the state has driven insurers out of the marketplace and, in the process, put anyone who buys insurance in real economic danger the next time a major storm hits.
While we do not agree with many of the conclusions in your article, the fact is that as predicted, short-term efforts to control rates have come at the expense of the market’s long-term stability. More ominously, every insurance consumer — including business owners — will have to pay the debts that come due when the next big storm hits and the government-run insurance mechanisms, Citizens and the Florida Hurricane Catastrophe Fund, run out of money.
The Property Casualty Insurers Association of America believes that we must protect and empower Floridians by focusing the regulators’ efforts on solvency and then restoring true competition among the insurers that remain. We must also take steps to get costs under control. Both the state and insurers share the responsibility of crafting long-term solutions that will mean stronger homes and safer, more financially secure families throughout Florida.