MIAMI BEACH, Fla. – Florida CFO Jimmy Patronis insists the changes Florida lawmakers gave insurers are working to right the market and bring more companies in over the next year.
He’s also criticizing Farmers Insurance Co. for pulling out of Florida.
Debbie Iten has been an insurance agent for years. Her family has been serving insurance customers for generations.
“It’s looking positive as long as nothing drastic happens in the market between now and then,” she said. “It’s not going to lower the rates, it’s just going to give maybe some more options to the market because we are very limited in certain counties in the state of Florida.”
“Reinsurance is the number one problem,” said State Rep. Hillary Cassel, D-Dania Beach. “It is 49 percent of what homeowners are paying in their premiums.”
That’s the insurer’s insurance to back their payouts.
Florida lawmakers did create a pool of assistance for them, though a fraction of companies have qualified for it.
“We can’t control inflation,” said Patronis.
The rising costs of re-building materials and a forecast for more and stronger storms are all part of premiums doubling, tripling or more, leaving the agents who write them having to explain things to angry and frustrated clients.
“It’s hard, it’s a really difficult conversation,” said Iten. “There have been tears shed in this office on more than one occasion.”
Some of the current rate hikes were filed before the new reforms took effect.
New state laws include a budget to subsidize homeowners to do hurricane upgrades, then a mandate for insurers to lower premiums afterwards.