Relying On Undercapitalized Insurers during Hurricane Season Puts Florida Homeowners at Extreme Risk
American Consumer Institute Analysis: Relying On Undercapitalized Insurers during Hurricane Season Puts Florida Homeowners at Extreme Risk
Washington, DC (July 1, 2010) – A ConsumerGram written by FSU professor and ACI expert Dr. Patricia Born details how regulatory efforts to keep Florida’s homeowner insurance rates artificially low has resulted in undercapitalized companies, which have “placed the state insurance system and economy in great peril.” Her assessment is that regulatory policies have kept Florida insurers on a weak financial footing. With the hurricane season well underway, that assessment couldn’t have come at a worse time.
Dr. Born’s analysis provides supporting statistical data showing that the state’s regulatory efforts are “only putting consumers at an even greater risk as premiums collected and available will likely prove insufficient for paying claims.”
To read the entire ConsumerGram, Click Here.