You are here:HomeNews CenterInsurance News2005Florida DOI Asks Insurers to Delay Rate Increases, But Won't Impose Freeze

Florida DOI Asks Insurers to Delay Rate Increases, But Won't Impose Freeze

Florida Insurance Commissioner Kevin McCarty has asked insurers not to file for new homeowners premium hikes and to delay pending hikes until after the state...
February 15, 2005

Florida Insurance Commissioner Kevin McCarty has asked insurers not to file for new homeowners premium hikes and to delay pending hikes until after the state legislative session ends in May. However, he said he would not seek to impose a freeze on homeowners insurance rates requested by the state's chief financial officer, Tom Gallagher.

McCarty said he hoped the legislature would take action during the session that begins in March to make homeowners insurance more affordable and available to beleaguered policyholders. A McCarty spokeswoman acknowledged that regulators can't forbid companies from making rate requests, but one industry official said carriers likely would follow the insurance commissioner's wishes. The call for a rate freeze stems from recent price hikes, including those proposed by Nationwide Insurance, which wants a 28 percent statewide increase on homeowners insurance and a 100 percent increase in mobile-home rates.  Press reports say Nationwide's proposals so angered Florida Chief Financial Officer Tom Gallagher that he asked McCarty last week to impose a price freeze.

"Insurance companies should not be in a rush to raise rates," Gallagher noted. "The prudent thing to do is to slow down and consider the consequences of rate increases on storm victims who are not able to handle an additional financial burden."

State Seeks Homeowners Insurance Rate Freeze (Palm Beach Post 2/10/05)

Florida Office of Insurance Regulation Memo (2/9/05)

FL DOI Approved 14 Rate Hikes Before Rate Freeze (Insurance Journal 2/14/05)

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