Report calls on Florida's state-run insurer to raise rates
A study from researchers at Florida State University says that the state's insurer of last resort should work to increase its rates and decrease available coverage.
The report, issued by the school's storm risk management center, says that Citizen's Property Insurance would be in severe financial trouble if a severe hurricane hit, even with the supposed safety net of the Florida Hurricane Catastrophe Fund.
Researchers said the insurer should focus on providing only basic homeowners insurance coverage in order to be less attractive to residents. Researchers also called on the state to revisit its current rate regulation rules, which they felt weren't being used appropriately.
"The pricing-related focus of private insurance regulation is intended to be on ensuring that rates are adequate, not excessive and not unfairly discriminatory," it said. "Recent regulatory outcomes in Florida appear to have focused on rate affordability rather than rate adequacy."
Lawmakers in the state are set to consider a number of insurance bills when they return next year, including reforms to Citizens, which has more policies in effect than any private Florida homeowners insurance firm.
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