Florida: Insurance Commissioner Names Team to Calculate Property Insurance Rate Savings

The Florida Office of Insurance Regulation (OIR) announced Wednesday that it has contracted with a consulting actuary to calculate property insurance rate reductions for Floridians which are required under legislation recently signed into law by Gov. Charlie Crist. J. Robert Hunter arrived in Tallahassee Wednesday to begin work to determine rate reductions which are required to be adopted by all Florida residential property insurers.

Hunter is the former insurance commissioner of the state of Texas and presently serves as the director of the Consumer Federation of America. He has over 45 years of experience in the insurance industry, with an emphasis on analysis of public policy issues related to insurance. Hunter is a fellow (by examination) in the Casualty Actuarial Society and is a member of the American Academy of Actuaries. Hunter will be joined by Paul Walther, CPCU, ARe, who is a renowned reinsurance specialist and consultant.

Insurance Commissioner Kevin McCarty said the work called for in HB 1A to accurately price the rate reductions is vital, which is why he is pleased to recruit someone of Hunter’s stature for the assignment. “The body of work Bob has put together over the years is legendary,” said McCarty. “He is truly one of the great minds on issues surrounding the insurance industry, and I am grateful we were able to attract him to Florida to take on this very important project.”

“I want to make sure consumers get the full benefit from the reforms,” said Hunter, “while also making sure insurers retain rates which accurately reflect the risk they are bearing. This law is a significant achievement, and I am honored to be asked to help implement the legislation.”

The OIR is required to calculate what is called a presumed factor by March 15th. A bill passed by the Florida Legislature during January’s Special Session provided valuable enhancements to the Florida Hurricane Catastrophe Fund. The changes will offset some of the massive increases in unregulated global reinsurance costs following the 2004 – 2005 hurricane seasons. Those increases are responsible, in large part, for the significant increases in insurance costs born by Floridians. The presumed factor will represent the savings that will be generated by these statutory changes.

Once the OIR publishes the presumed factor each residential property insurer is required to file a rate change reflecting the presumed factor for insurance policies written or renewed on or after June 1, 2007. Insurers cannot non-renew or cancel residential property insurance policies until they make these required filings.

Source: Florida Office of Insurance Regulation news release

Posted: Thursday, February 15, 2007 12:00:00 AM. Modified: Thursday, February 15, 2007 10:57:33 AM.

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