Insurance savings shrink [Florida property insurance]

The S. Petersburg Times ^ | 3/13/2007 | TOM ZUCCO

[doc30]

Those property insurance rate cuts state regulators promised beleaguered homeowners two weeks ago are flowing in, but they're far short of the amounts that were forecast.

Officials for Allstate Floridian and its sister company, Allstate Floridian Indemnity, on Monday proposed lowering their premiums a statewide average 14 percent starting June 1 as part of the state's efforts to reduce the cost of property insurance.

While that may seem like good news for Allstate's 350,000 policyholders, it is far less than the average 24 percent industry decrease state officials said homeowners should expect.

[doc30]

So, the FL legislature offers cheap re-insurance to the big carriers to lower costs for homeowners who have faced >> 400% increases over the last 2-3 years. Legislature estimates a 20-24% rate reduction based on the savings the insurers will get. Now the companies are only offering 4.5-10% reductions. Looks like the companies are taking the opportunity to pad their profits again, this time at tax payer expense. The only news is that it looks like state run Citizens will be consistent with their planned reductions, but I'm holding my breath.

[Prokopton]

So, the FL legislature offers cheap re-insurance to the big carriers to lower costs for homeowners

So the FL government subsidizes private insurance companies with taxpayer dollars. Now the taxpayers aren't happy.

Socialism never works out as advertised.

[jjw]

perhaps if we increase the government's involvement further, then the rates will really really go down.