Insurance group blasts McCarty's 'gut feeling' on State Farm
Soon after the South Florida Sun-Sentinel reported that Florida Insurance Commissioner Kevin McCarty says he has a “gut feeling” State Farm will continue writing property insurance policies in Florida, insurance groups started blasting the comment.
“I am not aware that anything in Florida has changed from yesterday, a week ago, or even a year ago,” said Christian Cámara, the Competitive Enterprise Institute’s Florida Insurance Project director, in a statement just released. “Florida continues to be unwelcome territory for nationally recognized insurance carriers that would bring the state much-needed capital. This is evident from the commissioner’s actions over the past few years and even the governor’s own hostile, anti-market rhetoric.”
“Unless the legislature rightfully pursues a veto override, as far as we know the insurance crisis in Florida remains unchanged. As for the commissioner’s assessment on State Farm, it appears his gut may be off kilter,” said Cámara.
Florida Consumer Action Network, the state's largest consumer group, agrees with Commissioner McCarty that State Farm may stay. FCAN has stated publicly on its blog that State Farm will probably find an excuse to stay, and will probably dump a few customers as an example to others.
Even if State Farm were to walk away from its lucrative book of business, other companies would eagerly seek their customers. Smaller companies salivate at the thought.
FCAN is happy that Gov. Crist called State Farm's bluff. We'll see who the better poker player is.
Posted by: Bill Newton, Florida Consumer Action Network | July 10, 2009 at 07:39 PM