Florida Insurers Seek Stronger Regulation

04/21/2010

It's been several years since a severe hurricane struck Florida's shores.

Still, a group of CEOs from the state's various property insurance companies are currently pushing for reform that would strengthen Florida's private insurance industry. Thirteen insurers were represented in a recent statement aimed at legislators, according to a report by the Insurance Journal.

A insurer/managing general agency structure used in Florida enables insurance companies to organize more quickly than they'd be able to under the traditional system. The CEOs criticized some of the financial decisions made by these MGAs, but said that these are not the root of their companies' financial problems.

Rather, fraudulent inspections and questionable hurricane claims have bilked the industry of revenue, according to the statement, while rate rollbacks and an economic crisis are responsible for further drawbacks.

"We encourage legislators to embrace plans that protect property owners, prevent financial mismanagement and preserve our ability to attract much-needed capital to the market," the statement said.

In an effort to reduce fraudulent home inspections, a recent amendment passed by Florida lawmakers requires photographic evidence of homeowners' mitigation efforts.

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