Florida CFO Jeff Atwater is again asking: "Why have rates not come down?"
In August Atwater (pictured) asked Insurance Commissioner Kevin McCarty the same question, and
received an answer. Then, McCarty stated there was not a direct correlation between an insurer's reinsurance costs and premiums. Reinsurance is just a part of a homeowners' insurance bill, he told Atwater.
Yet on Oct. 29 Atwater sent McCarty a letter asking McCarty's office to analyze the state's insurers to "ensure they are treating Floridians fairly." He admitted the study would "require a significant review of data" but wants a report by Dec. 18.
McCarty likely knew the letter from Atwater was coming. Each mention a recent meeting in their correspondence.
Atwater insists insurers have been telling customers and lawmakers that "the 'simple' explanation for the higher rates they are charging was due to reinsurance costs going up," and if reinsurance rates were to go down, "they would pass those savings along to their customers."
McCarty's response was quick and short. He acknowledge receipt of Atwater's letter, adding, "Such an analysis is already underway and I am confident that it can be finalized by December 18, 2013."
According to the Office of Insurance Regulation, since June 10 insurance companies have filed for rate decreases for homeowners, mobile home or dwelling fire coverage.
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