| Florida has a plan to lower property insurance | | | | rates by about 25% at the beginning of June, it |
| costs, but some experts are questioning its | | | | later requested an increase as a "correction", |
| viability are recent rate requests from The | | | | saying that the earlier reduction was too steep. |
| Hartford, Florida Farm Bureau, , Metropolitan | | | | Should the state approve the latest rate increase, |
| Property and Casualty and Auto Owners. | | | | the net result will be a decrease of 1.6%. A public |
| The latter are looking for an average increase of | | | | hearing for this is set for 10 July. |
| 41.9% across the state and Cincinnati Insurance | | | | Metropolitan's argument for increases was that it |
| want a rate increase of 37.5% on average. Florida | | | | had suffered a two dollar loss for every dollar |
| Farm wants to raise rates by 30.3%, and | | | | premium over recent years in Florida, and that it |
| Hartford is asking for an increase of 29.5%. | | | | could not continue to operate in such financial |
| Metropolitan Property and Casualty is looking for | | | | conditions, but must manage its business for the |
| an increase of 14.9% on average. | | | | benefit of policy holders across the whole of the |
| All requests must be approved by the state. A | | | | country. |
| spokesman for the Office of Insurance Regulation | | | | Cincinnati Insurance claimed that they had already |
| said that they wanted to make sure that rates | | | | renegotiated its reinsurance contracts at the |
| charged are adequate, not discriminatory and not | | | | beginning of 2007, and could not make further |
| excessive. | | | | savings at this time. |
| Meetings between the state's governor and | | | | Hartford said that is adjust rates every so often |
| Florida legislators have been making strident | | | | to make sure that they manage risk responsibly |
| efforts to cut costs in the early part of 2007, | | | | and price policies properly to cover the risk. |
| part of which enabled companies to purchase | | | | No one from Auto Owners, asking for the largest |
| cheaper reinsurance (insurance that insurance | | | | increases, was available for comment. |
| companies take out), and make sure that any | | | | There are plenty of other insurance companies |
| savings were passed on to consumers. | | | | out there, and how many of those will also be |
| Hindsight suggests that this was a short-term | | | | looking for rate rises? September 30 is the |
| solution with risk attached, and a long-term | | | | deadline for requests showing actual savings |
| solution with less risk is required. Consumers are | | | | achieved from cheaper reinsurance. |
| being encouraged to shop around on the Internet | | | | So far this year, the state says it has seen an |
| to find cheaper rates. | | | | average reduction of 15% for property insurance |
| Although Florida Farm Bureau did attempt to cut | | | | rates for new and renewed policies. |