Florida Insurance Commissioner Kevin McCarty Outlines Free Enterprise Approach to Property Insurance Market at Senate Banking and Insurance Committee Today
Jan 16, 2013
During the Senate Committee on Banking and Insurance (“Committee”) meeting today, January 16, 2013, Florida Insurance Commissioner Kevin McCarty presented a proposal entitled “Principle-Based Reforms for Florida’s Property Insurance Market.”
To view the presentation, click here.
Based on guidance from Chairman David Simmons, along with other Committee members during their December 2012 meeting, Commissioner McCarty was asked to create a plan for strengthening the property insurance market in Florida.
In response, Commissioner McCarty 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 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 Commissioner McCarty said. “I look forward to working with the Legislature, Governor Scott and the Cabinet to further address these issues.”
To view the complete materials from today’s meeting, click here.
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