Posted On: October 6, 2007, 7:49 am CDT

Posted By: Temblor

You would think the Superintendent of Insurance would better understand how the industry works.The industry funded the 9/11 losses with no problem. the industry funded the hurricanes of '04 and '05 with no problem.

If he wants to see homeowners premiums come down, why not require homeowners in hurricane target areas to protect their homes against same? Even in Florida, a large number of homes and businesses do not even have shutters, the best protection of all.

Hurricane losses are caused by poorly constructed buildings built in areas where they shouldn't be, and being poorly protected as well.

In '05 Hurricane Wilma, crossed S. Florida with top wind speeds perhaps approaching 110 mph, caused $21,500,000,000 in damage.

Why? Lousy construction, and lack of hurricane protection.

A recent survey of inhabitants of hurricane prone areas showed 88% have taken no steps to protect their homes.

But they still want low premiums.

Florida has attempted to set up a hurricane catastrophe fund to provide cheap reinsurance to insurers. After '04 and '05 it had to borrow $13,500,000,000 to pay it's claims, it's paying that back over 10 years.

It currently has $2,000,000,000 in the bank, but it's liabilities from it's reinsurance contracts total $27,500,000,000.

The state forces insurers to buy it's reinsurance, but companies are so wary of it's ability to pay, that they then buy reinsurance against the fund not being able to pay it's losses.

Our new governer, Charlie Crist doesn't care if he bankrupts the state government as long as he can look as if he's doing something to protect us from those evil insurance companies.