Demotech Offers Opinion to Florida CFO Jeff Atwater on Reinsurance Cost Savings Question

Nov 13, 2013

Suggesting that the cost of repairs relating to damage claims has contributed to the steady increase in Florida insurance rates, Demotech President Joe Petrelli offered his “unsolicited response” to the second of two recent letters from Florida Chief Financial Officer Jeff Atwater to Florida Insurance Commissioner Kevin McCarty.   In the letters, CFO Atwater questioned why property insurers are not passing along their reinsurance cost savings to Florida policyholders.

In his letter to CFO Atwater, dated November 7, 2013, Mr. Petrelli states that Demotech’s position on reinsurance is ” . . . likely to remain that consumers benefit when their insurers purchase more vertical and horizontal protection annually as opposed to the same amount of protection or less.”

Demotech’s letter is attached for review.

 

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