Property Insurance Reform

What's New

Legislators revisited the insurance issue during the regular session in March and April and passed SB 2498. This legislation will make it more difficult for new insurers to create state-only subsidiaries that allow them to hide their profits with national parent companies. It will also make Citizens Property Insurance more competitive, which will bring immediate rate-relief to many Floridians.

Overview

Between 2004 and 2005, a series of intense hurricanes pummeled the Florida coastline and trampled through the center of the state during an unusually active storm season. Most insurance companies have reacted to the higher frequency in storms and increased storm damages by filing for giant rate hikes, dropping policies, and refusing to pay claims filed by customers who had dutifully made their monthly payments for years without ever filing a claim.

Floridians are now suffering from double- and triple-digit property insurance rate increases. Many have been driven from their homes as a result. At the same time, insurance companies are raking in record profits and enjoying more privileges than ever before.

While the Florida Legislature cannot prevent another hurricane from hitting the state, they can make sure that our insurance regulatory scheme encourages competition while protecting the people of the state from abusive corporate practices.

Florida PIRG is working to bring Floridians property insurance rate-relief and to make sure Florida has an insurance regulatory scheme that prioritizes people over profits.

Lawmakers must continue efforts to make property insurance more affordable for consumers. Floridians need an insurance regulatory scheme that encourages competition and low rates.