Citizens will pay for $485,000 Keys insurance study [Florida Keys Keynoter, (Marathon, Fla.)]
|By Florida Keys Keynoter, (Marathon, Fla.)|
|McClatchy-Tribune Information Services|
Once completed, this could set the stage for possible rate reductions or even moving Keys windstorm insurance policies to another entity.
"Citizens stands to drop
She described the study as a win-win for the beleaguered state insurer of last resort, noting the study will either validate the current higher rates applied to the Keys or establish a lower risk premium that could allow the Keys to leave Citizens altogether.
"If this independent [study] suggests a lower probable maximum loss and indicated rate, then we have the opportunity to find alternatives, whether through private insurers, some form of self-insurance or other innovative structures within our county," she added.
In August, Fair Insurance Rates for
Friday's action by the Citizens board appears to fund projected costs for the study, which Carruthers said will include independent analysis of the latest data and risk models, inspections of Keys building techniques and hurricane code enforcement, and perform "state-of-the-art modeling and loss forecasting."
FIRM has argued that windstorm insurance rates in
"Between 2003 and 2011 -- through two of the worst storm seasons in history --
On Friday, Carruthers told the Citizens board its investment in the study is good public policy and cheap by any measure: "
She said the average policy holder pays
Citizens insures 25,000 windstorm policies in the Keys.
It wasn't clear Friday when the study will begin or how long it will take to crunch the data and bring back findings to Citizens for further action.
But Citizens President
(c)2012 the Florida Keys Keynoter (Marathon, Fla.)
Visit the Florida Keys Keynoter (Marathon, Fla.) at www.keysnet.com
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