Despite enduring an ongoing salvo of criticism and potentially damaging reform laws spurred by Florida Gov. Charlie Crist, most insurance industry officials have been careful about mounting any verbal counterattack, acknowledging the political demands made on the catastrophe-prone state's lawmakers.
Legislative changes have included banning future Florida-only insurer subsidiaries and changing rules for coverage by Citizens Property Insurance Company, which–according to the state's chief financial officer, Adelaide "Alex" Sink–has created an actuarially unsound situation for the state's insurer of last resort.
Among the Republican governor's recent statements has been a comment that Florida is "operating now on a level playing field, where the consumers' rights are being heard, too, for the first time in a long time," and an expression of scorn for insurers that exit the state.
He has also praised legislators he said were making "sure that the insurance industry wasn't taking advantage of Floridians any more."
When asked about the governor's official actions and rhetoric, Cecil Pearce, American Insurance Association vice president, stressed that he understands the pressure Florida's elected officials are under to ameliorate the effects of high insurance prices on residents, "and we want to work cooperatively with the governor and other elected officials on a long-term solution that all parties can support."
He also praised state leadership efforts in the area of mitigation and building codes.
Sam Miller, executive vice president of the Florida Insurance Council, would not comment on the governor, who by some polls has a 73 percent approval rating after taking office earlier this year.
Joseph Annotti, senior vice president for the Property Casualty Insurers Association of America, said he believes Gov. Crist is sincere in his efforts to ease the crunch of high property rates, but takes issue with some of his tactics.
"Casting insurers as the sole reason for Florida's property insurance problems is inaccurate and unfair," he said. "We would like to see the political rhetoric toned down so that we can work with the governor and the legislature on meaningful ways to address the fundamental problems facing the Florida insurance market."
During the legislative session that concluded recently, insurance industry representatives did express criticism of the expansion of the Florida Hurricane Catastrophe Fund and the availability of coverage from Citizens. They stressed that the true impact of the measures will be felt once another couple of big storms hit the state.
Robert P. Hartwig, president of the Insurance Information Institute, is one industry spokesman who is not so reticent about criticizing the governor's attitude.
"The governor's feistiness seems to have morphed into an unwarranted cockiness that he will soon regret," he said.
While the governor is bashing insurance companies, Mr. Hartwig added, "Mother Nature is prepared to deliver a financial comeuppance to the state."
Mr. Hartwig discounted assertions that the governor has made Citizens more competitive. "Competition means that in the long run you cover your costs," he said. "Citizens has not done that historically, and seems even less likely to do so in the future."
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