Lakeland Ledger: Legislators Get Insurance Warning

Oct 7, 2009

The Lakeland Ledger published this article on October 6.

Some insurance companies could go out of business if a major hurricane hits Florida, the state’s insurance commissioner told a Senate panel Tuesday.

But after more than an hour grilling by lawmakers, Commissioner Kevin McCarty didn’t provide specifics on which companies might fail or why, telling senators that it’s all part of being in the risk business.

“Florida remains the epicenter in terms of concentration of risk,” McCarty told the Senate Banking and Insurance Committee, chaired by Sen. Garrett Richter, R-Naples.

McCarty, who has frequently sparred with lawmakers on the state’s insurance regulations, said Florida’s property insurance liability is now $2.1 trillion, which would likely bankrupt even some of the largest insurers.