The following statement may be attributed to Neil Alldredge, senior vice president of State and Policy Affairs for the National Association of Mutual Insurance Companies (NAMIC), on Florida Gov. Charlie Crist’s veto of the Property Insurance Omnibus Bill.
“Florida Governor Charlie Crist just doesn’t get it. Florida needs to create a business climate and competition-based pricing in which the free market is alive and well for the purchase of insurance. Such a market helps build a clear understanding of the true cost of risk, which would promote wiser decisions with a long-term view regarding land-use planning and resource management. Only then will consumers have plentiful and sustainable choices for coverage. But the governor decided to begin hurricane season by vetoing SB 2044 – legislation that would have continued the slow but steady progress that had been occurring for insurance consumers and companies in Florida.
“While the bill did not contain provisions that would have allowed insurers to appropriately and accurately match rate to risk and encourage competition that can only benefit insurance customers, NAMIC members and their policyholders would have benefitted from the provisions that addressed cost drivers, such as public adjuster expenses, replacement cost claims, reinsurance premiums, and inappropriate mitigation discounts.
“A great deal of time and effort went into crafting and compromising on the omnibus property insurance package. In fact, it’s been nearly a year since the Windstorm Mitigation Committee of the Florida Commission on Hurricane Loss Projection Methodology began its series of meetings to explore concerns regarding Florida’s mandated mitigation discounts and offered recommendations that it provided to the Legislature.
“Many other stakeholders invested countless hours in discussions and negotiations to achieve a bill that may not have made everyone happy but certainly would have resulted in some improvement in Florida’s insurance marketplace. Governor Crist has decided all that work was worthless. The governor’s decision to veto this bill is nothing more than pandering to voters as he vies for a Senate seat, but those who understand the issue and the importance of this bill will know exactly why he made the decision he did.”
For further information, contact
Director of Communications State and Policy Affairs
(317) 875-5250 Tel