FOR
IMMEDIATE RELEASE Contact:
Ed Domansky
850-413-2515
TALLAHASSEE,
Fla. – “I previously have
stated that the OIR recognizes the importance of competition in
Florida’s property insurance marketplace, but I am concerned that SB
2036 (and HB 1171) will have several negative consequences, which thus far
have been overlooked; and I feel it is important that the Legislature be
informed of my concerns before this bill is heard on the floor of the
Senate.
“In
addition, there is no guarantee that these companies will continue to
write in Florida, even if this bill passes. Not a single company has
indicated to me a willingness to either stay in Florida or write new
business if this proposal is adopted. “In
fact, in 2002, the former Department of Insurance allowed a large national
insurer to write condominium insurance at an unregulated rate. The
results were not beneficial for Floridians. This company massively
increased rates over the next several years and shortly thereafter
canceled every policy in the state. There is no reason to believe
that this proposal will result in anything different. “I
also am concerned that this proposal will have unintended negative
consequences on the competitive opportunities for our current domestic
insurers – something that the Legislature and the Office of Insurance
Regulation have worked very hard to cultivate. “The
House and Senate invested $250 million in Florida companies who are
writing new business in our state. That program has been extremely
successful, and has helped attract more than 40 new property insurance
writers to Florida, with more than $4 billion in new capital. The
proposals in SB 2036 (and HB 1171) threaten to disrupt this progress.” #
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