TALLAHASSEE, Fla. (AP) – Aug. 13, 2013 – Florida’s insurance commissioner says there are reasons why homeowner rates in the state are not coming down despite reports that insurers are starting to save money on one of their biggest expenses.
And he said that in some instances rates may still go up since some companies have spread increases out over several years.
Chief Financial Officer Jeff Atwater last week asked Kevin McCarty to explain to him why costs have not been dropping this year. Florida hasn’t been hit by a hurricane since 2005 and industry reports point out that the cost of reinsurance has dropped by 15 percent to 20 percent this year.
Insurers purchase reinsurance to provide financial backing in case of major claims.