Insurer Seeks 28 Percent Rate Hike
July 30th, 2008 by flanewsState regulators are still deciding if they’ll allow a Florida insurer to raise its rates. Farm Bureau is seeking a 28 percent rate hike. The Office of Insurance Regulation held a public hearing about the insurer’s request in Tallahassee today. Farm Bureau has more than a hundred thousand policy holders in Florida. The company claims it needs to raise rates so it can cover claims if a major hurricane hits the state. Florida Association of Insurance spokesman Bob Lotane said Farm Bureau’s is legitimate.
“This is a company that isn’t owned by Wall Street investors they’re owned by the policy owners so they’re about Main Street and they’re not about Wall Street and that’s the way they’ve always operated. So when they ask about a rate increase that adds a little more credence the type of company it is and the history of keep their rates as low as possible,” said Lotane.
OIR spokesman Ed Domansky said regulators need more proof to support Farms Bureau’s claims.
“It really comes down to a matter of not whether they’ve had a rate hike or where their rates have been over a number of years it really comes down to whether or not they’ve properly documented in their filing the rate that they’re requesting now,” said Domansky.
Regulators said they expect to have decision soon. Next month OIR will hold a hearing into State Farms request to raise rates 47 percent.
Posted in Insurance, State News | No Comments »