Friday, October 16, 2009

In a good year, insurers still fail

Insurers on shaky ground

102 of the 210 property insurers operating in Florida have reported underwriting losses, according to Insurance Commissioner Kevin McCarty.

The fact that these insolvencies and underwriting losses occurred in a year in which a hurricane has not struck Florida seriously undermines confidence in the ability of private insurers operating in this state to financially weather a stormy future.

Sarasotan Bill Griffin, his family and businesses have been involved in one failed company...

Citizens and a state-run reinsurance fund remain undercapitalized. The exodus from Florida of brand-name national firms and the underwriting losses of nearly half the property insurers in the state suggest the private sector isn't going to provide adequate coverage unless conditions change.

Insurance is complex and, in Florida, there is no simple way to meet the challenges of making coverage affordable while keeping companies solvent.

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