Dear Fellow Floridian:
Through reforms passed last legislative session, we were able to target the fraud in Florida’s auto insurance system that has caused rates to skyrocket for Florida drivers. I believe these reforms will go a long way in reducing this significant financial burden on Floridians. One of the provisions of the PIP legislation required the Office of Insurance Regulation to contract with an independent consultant to calculate the expected savings from the new law.
The independent analysis, released this week, projects that Florida drivers will see a 14 to 24.6 percent decrease as a result of of the reforms passed last session, which go into effect Jan. 1, 2013. This report reflects my firm belief that getting at the root of the fraud in our personal injury protection system will give Florida’s consumers the rate relief they deserve. Recent history has shown us that independent actuarial studies conducted on reforms relating to the workers’ compensation and medical malpractice systems significantly under-estimated the reductions actually realized.
I was pleased to see that the independent consultant, Pinnacle Actuarial Resources, Inc., included input from Insurance Consumer Advocate Robin Westcott and used the important data provided by her office to help calculate their findings. I am eager to see these projected savings, if not more significant savings, passed on to Florida drivers. You deserve to see the full impact of these policy changes through lower auto insurance rates.
[Jeff Atwater] Jeff Atwater Chief Financial Officer State of Florida
Tropical Storm Isaac May Reach Florida as Soon as Sunday[https://nova2009.imarcsgroup.com/vendorimages/dfs/Isaac.JPG]
Tropical Storm Isaac is projected to reach Florida as soon as Sunday. Florida residents and business owners can prevent a natural disaster from becoming an insurance nightmare by being prepared, the key to getting back on your feet quickly. Knowing the details of your insurance policy is extremely important and may help prevent your claim from being denied.
Floridians should review their insurance policies in advance. Once a tropical storm warning has been issued it is too late to make changes to your policy. Talk to your insurance agent about the coverage provided in your home and auto policies to make sure it is adequate in the event of a disaster.
Visit my website to find out how to prepare your business and your family for a storm. http://www.myfloridacfo.com/division/consumers/storm/WhenAStormApproaches.htm.
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[In this Issue]
Volume 9, Number 34 August 24, 2012
Message from the CFO on Auto Insurance Reforms
[Florida Department of Financial Services]