Florida CFO: Why aren’t insurance rates dropping?

TALLAHASSEE, Fla. (AP) – Aug. 8, 2013 – Florida Chief Financial Officer Jeff Atwater wants to know why homeowner insurance rates aren’t dropping.

Atwater sent a letter Wednesday to Florida’s insurance commissioner, Kevin McCarty, noting that one of the main costs for insurers has been going down this year. He asked McCarty why those savings weren’t being passed along to consumers.

Atwater is one of the state officials with the power to hire and fire the insurance commissioner.

In his letter, Atwater wrote that trade journals have reported recently that the cost of reinsurance has come down an average of 15 to 20 percent. Insurers purchase reinsurance from an out-of-state or foreign company to provide the insurer financial backing in case of major claims.

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