Insurers refute Fla. Gov. Crist’s ‘broken promises’

Insurance companies have taken exception to a reported accusation by Florida Gov. Charlie Crist that the insurance industry has broken its promises to lower rates.

In the July 3, 2007, edition of the South Florida Sun-Sentinel, Crist is quoted as accusing the insurance industry of “breaking its promises” and suggesting that the industry was behind asking the state to assume more risk.

The Property Casualty Insurers Association of America (PCI) shot back with a response from William Stander, its regional manager. “To be clear, the 24-percent rate reduction was never a promise made by the insurance industry. This was an estimate from state officials and regulators who failed to realistically portray the reductions consumers could expect,” Stander maintained.

“Furthermore,” Stander continued, “the insurance industry did not ask Gov. Crist or the state of Florida to take on more of a role in the insurance market or assume an increased level of risk. In fact, this decision was made against our recommendations and is seen as a flaw in the current system.”