In January 2007, the Florida Legislature froze the rates of Florida’s state sponsored property insurer, Citizens Property Insurance Corporation, until the end of the year. On June 26, 2007, Florida Governor Charlie Crist signed a bill extending the rate freeze until January 1, 2009.
The bill also requires Florida subsidiaries of national property insurers to report their parent company’s profits. It also prevents national property insurance companies from establishing new Florida subsidiaries. According to Crist, some national insurers, which operate at a loss in Florida, seek higher rates in Florida while their nationwide businesses are profitable. The new statute will not impact companies with existing Florida-only subsidiaries.
We will continue to monitor developments on InsureReinsure.com.
Click here for a link to Governor Crist’s press release regarding Florida’s latest property insurance reforms.