According to an article in the WCTV Tallahassee Headlines, only about half of the insurance companies doing business in Florida have complied with a new rate filing law to date. Insurers are supposed to pass property insurance savings on to consumers from the state's assumption of $15 billion in risk. So far, the results are mixed at best.
“We’ve seen some increases and we’ve seen some decreases ... on their original filings from March,” said an Office of Insurance Regulation spokesman.
The most upsetting has been the request by Allstate Insurance for an average 42% hike with another 28% hike for a subsidiary. These filings come at the same time the state has issued subpoenas to insurance companies to find out why rates have not decreased as expected.
When asked about the insurance company filings to date, Gov. Crist said it looks like a violation of law when they ask for increases and don’t pass on the saving they’re supposed to under the reforms the legislature put through in the special session.
The good news for policy holders is that any property insurance rate increases won't take effect until they are approved and the governor says that it is doubtful.
Some of these rate increase requests are being driven by insurance ratings services who are also under investigation for possible collusion in insurance rate setting.
Need information about Tampa Bay real estate, call upon Cheryl Stimac of Red Shoe Realty.
