A bitter, 17-month dispute between state regulators and Florida's largest private property insurance carrier was resolved following an eleventh-hour deal between State Farm Florida and Insurance Commissioner Kevin McCarty.
The agreement, announced in December, gives State Farm a rate hike and permission to shed up to 125,000 policies, many of which have a higher risk of hurricane damage. In return, the state avoids the prospect of losing a major carrier at a time when Florida's property insurance market remains volatile.
"This is an important step," said Jim Thompson, president of State Farm Florida. "It helps stem State Farm Florida's deteriorating financial condition. It reduces the company's risk exposure. It moves us closer to rate adequacy. And for most of our customers, it means that State Farm Florida continues to be there for them."
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
- Educational webcasts, resources from industry leaders, and informative newsletters.
- Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
