Florida Insurance Commissioner Presents “Principle-Based Reforms for Florida’s Property Insurance Market” to the Senate Banking & Insurance Committee
– Florida Insurance Commissioner Kevin McCarty presented a proposal today entitled “Principle-Based Reforms for Florida’s Property Insurance Market”
to the Senate Banking and Insurance Committee
. Based on guidance from Committee Chair Senator Simmons and other committee members during last December’s meeting, Commissioner McCarty was asked to outline a plan for strengthening the property insurance market in Florida.
In response to the committee’s guidance, the Commissioner outlined steps to return the property market to a free market approach; enhance Florida’s attractiveness as a place for insurers to do business; align policyholder risk and reward; expand risk-sharing opportunities; stimulate additional private sector capital; reduce the overall exposure of Citizens Property Insurance Corporation (Citizens); and ensure policies and coverage benefits remain meaningful for Florida consumers.
Utilizing principle-based reform measures, Commissioner McCarty provided the following four desired outcomes that could assist in achieving these goals:
1. Restructure alternative markets so they become residual markets to provide quantifiable risk management for Florida.
2. Maximize the risk-bearing capacity of the private market, including attracting new capital.
3. Promote consumer choice, responsibility and market power.
4. Enhance meaningful risk mitigation programs.
“I appreciated the opportunity provided by Chairman Simmons and members of the Senate Banking and Insurance Committee today to articulate principle-based solutions to the challenges facing Florida’s property insurance market. These free-market solutions are based on sound insurance and economic principles, “stated Kevin M. McCarty, Florida’s Insurance Commissioner. “I look forward to working with the Legislature, Governor Scott and the Cabinet to further address these issues.”
The Senate Banking and Insurance Committee is comprised of the following: Senator David Simmons (R), Chair; Senator Jeff Clemens (D), Vice Chair; Senator Lizbeth Benacquisto (R); Senator Nancy C. Detert (R); Senator Miguel Diaz de la Portilla (R); Senator Alan Hays (R); Senator Tom Lee (R); Senator Gwen Margolis (D); Senator Bill Montford (D); Senator Joe Negron (R); Senator Garrett Richter (R); and Senator Jeremy Ring (D). For more information about the Florida Legislature, visit Online Sunshine