IBA Southeast: Florida authority will address law to control insurance inflation

IBA Southeast: Florida authority will address law to control insurance inflation | Insurance Business America

IBA Southeast: Florida authority will address law to control insurance inflation
Consumer protection is the top agenda of Florida Office of Insurance Regulation as residents try to deal with the aftermath of Hurricane Matthew, according to reports.
 
“It’s our No. 1 priority, but we would like to fix it in a surgical way,” Caitlin Murray, the department’s director for government affairs, told reporters during a public conference.  
 
Murray was referring to the rule which makes consumers vulnerable to contractors, with a legal loophole allowing property insurance policy holders to resign their insurance rights to contractors or lawyers in return for faster repairs.
 
Critics have lambasted the rule, saying it can easily be abused, leading to subpar repairs and inflated premiums. For instance, Citizens Property Insurance said these deals have resulted in 6.4% rate hike to take effect February next year.
 
Murray added that 72% of the rate increase filings were due to this rule. 
 
“We want to make sure we hone in on the real problems and simply get it done,” she further stressed. “As the saying goes, pigs get fat; hogs get slaughtered.”
 
Additionally, she emphasized, “I want to make it clear that the office is absolutely intending on proposing legislation to address this issue. Our No. 1 priority has been and continues to be to hold consumers harmless. With that, we are still looking into attorney fees provisions, however with a consumer-centric plan to fix it.”
 

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