Posted On: February 8, 2008, 1:47 pm CST

Posted By: JR

George obviously does not understand simple economics. Insurance companies have paid out far more in Florida than they have taken in over the last 15 years. In fact many companies lost 30 years worth of profit in just a 2 year span. Lets not forget that insurance companies will and must make a profit just like any other business venture. Allstate is on the brink of insolvency according to their own testimony this week. How would you like to be insured by a company that publically states they will not be able to pay claims properly if they have another storm event. How will the state of Florida pay its obligation to the other insurance companies (up to $60 billion) when the state only has a few billion in the fund. They will pass it on to property owners in the form of assessments and or taxes. At least if the private market is insuring the risk, the public does not wind up paying the claim after the event. Wake up People, Citizens is the biggest time bomb we have ever seen and the government is running it. If Allstate wants a 40% rate increase let them have it. How many people will buy from Allstate if they can get it cheaper down the road. Do you really think Allstate will write more business if thier rates are higher than others? The free market system must be given a chance to work and that can only happen if the politicians get out of it. I don't like higher rates, but I also don't like the threat of a huge bill when the next storm hits and I have to help pay the losses of other people that are insured with Citizens or Companies that go under because the state can not meet its obligation to pay claims without raising taxes or sending us a bill for our fair share.