NU Online News Service, Aug. 17, 2:00 p.m.EDT

Florida Citizens Property Insurance Corp. chief executive BarryGilway says the state-run insurer is going to improve itsmitigation inspection program while taking a “clean, concise look”at the organization's budget.

In an effort to better its standing with the public and themedia, Citizens held a press conference today in large part toaddress recent media reports and concerns from policyholders andagents regarding the insurer's home inspection program.

Reports highlight homeowners' frustrations with the program, asmany have seen mitigation credits for hurricane construction andrefurbishment disappear in an effort by Citizens, the media hassaid, to increase premiums.

Gilway says that is Citizens' “last objective.”

“We want to provide every opportunity for homeowners to get thecredits they deserve,” he says, while acknowledging that there isdisconnect between the so-called last-resort property insurer andpolicyholders.

Addressing that disconnect, Citizens has outlined severalchanges to the program, starting with better communication with andeducation of policyholders and agents.

Apparently one major issue with these inspections is access toan attic to assess roof attachments. Instead of credits being wipedaway where there is no access to the attic, Citizens will nowprovide a follow-up inspection so arrangements can be made to getinto the roof space. Also, the insurer will suspend the removal ofcredits for a year.

Finally, a dispute resolution process has been enhanced.Homeowners, who will be informed of their right to argue anyinspection finding, are asked to call a toll-free number or contacttheir agent.

“The real key is the dispute process,” says Gilway. “Many don'tunderstand they even have the right, let alone how. It wassomething we absolutely had to fix.”

Homeowners will receive a copy of the inspection results,instead of it being sent solely to the agent, Gilway adds.

The new CEO has said he wanted to increase communication withconsumers and take a look at the insurer's operations.

Gilway updated the media about Citizens' ongoing full review ofcompensation and benefits, the efficiency of its multiple officesand its alignment with outside vendors.

He dismissed media reports that Citizens' travel expenses wereexorbitant. The travel budget is about $3.4 million—a fraction ofCitizens' overall $2 billion budget.

Plus, travel this year resulted in a “staggering” benefit to theinsurer and Florida taxpayers. Trips to reinsurers in Bermuda andEngland led to a $50 million savings for the cash-strappedcorporation's reinsurance plan, Gilway reports.

The state-backed insurer secured $750 million of hurricane reinsurance protection through a saleof catastrophe bonds, more than three times the originaltarget.

“I was shocked they were able to accomplish that” given marketconditions, Gilway says.