State turns down another insurance rate rise

By JOHN HIELSCHER
Herald Tribune

State regulators shot down another rate increase for a large homeowners insurer.The Florida Office of Insurance Regulation denied a 29.5 percent rate increase sought by insurers of The Hartford Financial Services Group.

The Hartford's six companies cover more than 91,000 Florida homes, including 5,880 in Sarasota, Manatee and Charlotte counties.

The Hartford asked for the rate increase in its "true-up" filing, a price adjustment all state insurers are making after buying their reinsurance that covers the 2007 hurricane season.

Under the insurance reform law, property insurers were expected to cut rates after purchasing the cheaper backup insurance from the state. Instead, dozens of companies first lowered prices but have since filed for sizable rate hikes in their true-up filings that would wipe out any savings for their customers.

The Hartford, for example, lowered rates by 17.7 percent under the new law.It then asked to raise rates by 29.5 percent, which would have meant a net 6.6 percent increase for policyholders.

Insurance Commissioner Kevin McCarty said Hartford's proposed rate increase did not reflect its savings after buying reinsurance from the Florida Hurricane Catastrophe Fund." I am committed to ensuring that insurance companies doing business in Florida are offering policyholders the best rates possible," he said. "

The rates proposed by The Hartford are not in line with this objective." The Hartford, Conn.-based insurer is reviewing OIR's decision and deciding its next step, said Debora Raymond, media relations manager." We believe that our proposed changes are actuarially justified," she said. "The filings we submitted pass on to consumers all of the savings from the temporary increase in catastrophe limits legislation."

The OIR has recently rejected other proposed rate hikes, including from Florida Farm Bureau, Cypress Property & Casualty, First Floridian Auto & Home and Travelers Indemnity Company of America.

Florida Farm is appealing the denial of its 30.3 percent rate hike. At least six companies have withdrawn rate increases after facing scrutiny from the regulators.