Florida has effectively forestalled any immediate exodus by carriers from the homeowners' insurance market in the wake of the recent tornado catastrophe, but one risk management consultant said the upshot of moves by government officials is to discourage insurer involvement in the Sunshine State.
Florida's cabinet passed an emergency regulation that prohibits insurers from nonrenewing policies until they make a new rate filing that includes expected savings on reinsurance costs.
Florida's new property insurance law, passed in January, includes a provision to allow primary insurers to buy additional reinsurance from the state catastrophe fund at cheaper prices than they would see from a private reinsurer. Primary carriers would be expected to lower rates as a result.
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