Proposals to boost homeowner insurance rates anger Crist

TALLAHASSEE, Fla. – July 31, 2007 – Florida Gov. Charlie Crist said Monday he expects the state to reject recent requests by property insurance companies to raise prices.

“I don’t think they’re going to get approved,” Crist said during a meeting with the South Florida Sun-Sentinel’s editorial board.

Earlier this month, state Insurance Commissioner Kevin McCarty turned down Florida Farm Bureau’s bid to boost rates by about 30 percent. Crist said consumers can expect “more of the same” when the state reviews other rate filings.

Despite a mandate to lower insurance costs, many insurers are instead asking for rate increases, including The Hartford, Metropolitan Property and Casualty, Cincinnati Insurance Cos., Auto Insurers and Amex Assurance Co.

Insurance companies say the rate increases are justified as their storm risks in Florida intensify.

The problem of skyrocketing property insurance costs was a centerpiece of Crist’s election campaign, and he continues to talk tough on the issue.

On Monday, he called insurance companies “greedy” and said he’s concerned about their truthfulness.

“I’m fed up with them,” he said. “I’m very frustrated with this industry.”

During a special legislative session in January, the state agreed on a plan that would allow property insurers to buy cheaper reinsurance – insurance for insurance companies – and insisted that they pass those savings on to customers.

Crist said Florida Farm and other insurers don’t appear to be doing that. The governor said he and state lawyers are reviewing the legislation package to make sure insurance companies are abiding by the law.

Crist urged consumers to find cheaper insurance through a new state Web site, shopandcomparerates.com. He added that five new insurers are giving Floridians more options than they’ve had in the past.

Insurance officials blame Crist for making promises about rate reductions he couldn’t keep.

“The insurance industry warned the governor that his assumptions were overly optimistic,” said Bob Hartwig, president of the Insurance Information Institute. “That turned out to be the case.”

Florida Farm Bureau said it did comply with the state’s order to cut insurance costs, reducing rates by about 25 percent, effective June 1. But it later determined that the reduction was too steep, calling its subsequent request for an increase a “correction.”

“Hurricanes are hurricanes,” said Sam Miller, executive vice president of the Florida Insurance Council. “They’re the villains, not us.”

Copyright © 2007 South Florida Sun-Sentinel, Paul Owers. Distributed by McClatchy-Tribune Information Services