Florida Insurance Council proclaimed July 31 “Get a Clue Day” by meeting with state politicians, bureaucrats and reports to fully explain how insurance works and why the current course the state is taking is a prelude to financial disaster. The importance of this message was stressed as Florida Gov. Charlie Crist accompanied an actuary as he demonstrated how mandating artificially low insurance rates while losses are increasing can only lead to insurers leaving the state or risking bankruptcy. “The people of Florida need to prepare to learn the reality that hurricanes will strike the state and cause widespread damage,” said Crist. “To force more families into Citizens Insurance Company ignores basic insurance principles such as the concentration of risk and adequate pricing that will certainly lead to Floridians being required to bail out the insurer.”
“The opening of our eyes to the realities of this situation will allow us to focus on working with consumer groups, insurers, governmental entities to determine the best possible solution,” staid one state legislator. “Costs for repair and replacement of insured structures have increased exponentially and to expect insurers to not increase premiums to pass those costs on to the insureds is not only stupid but possibly illegal. Making a fair profit should not be considered against public policy.”
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Florida Insurance Council proclaimed July 31 “Get a Clue Day” by meeting with state politicians, bureaucrats and reports to fully explain how insurance works and why the current course the state is taking is a prelude to financial disaster. The importance of this message was stressed as Florida Gov. Charlie Crist accompanied an actuary as he demonstrated how mandating artificially low insurance rates while losses are increasing can only lead to insurers leaving the state or risking bankruptcy. “The people of Florida need to prepare to learn the reality that hurricanes will strike the state and cause widespread damage,” said Crist. “To force more families into Citizens Insurance Company ignores basic insurance principles such as the concentration of risk and adequate pricing that will certainly lead to Floridians being required to bail out the insurer.”
“The opening of our eyes to the realities of this situation will allow us to focus on working with consumer groups, insurers, governmental entities to determine the best possible solution,” staid one state legislator. “Costs for repair and replacement of insured structures have increased exponentially and to expect insurers to not increase premiums to pass those costs on to the insureds is not only stupid but possibly illegal. Making a fair profit should not be considered against public policy.”
Source: Office of Florida In Your Dreams