Legislative Inaction Leading to Higher Insurance Rates
Less than a week after the 2017 Legislative Session ended without much-needed Assignment of Benefits (AOB) reform, Florida homeowners are already starting to see the negative impact in the form of higher insurance rates. This week, the South Florida Sun-Sentinel reported that state insurance regulators directed two insurance companies operating in South Florida to raise rates because of high costs associated with excessive claims and steep losses.
These rate increases – 16 percent for one company and 8 percent for another – were even higher than what the insurance companies had requested. Actuaries with the Florida Office of Insurance of Regulation, based on their review of the companies’ losses, determined the increases were necessary to ensure the companies remain financially sound and their policyholders adequately protected.
These increases are exactly what the Florida Chamber of Commerce and its Consumer Protection Coalition warned – that lawmakers’ failure to protect consumers from AOB abuse will result in higher insurance bills and put home ownership out of reach for many Floridians. This week’s story in the Sun-Sentinel says water losses in the tri-county area of South Florida necessitated the rate increases. Without legislation to curb the abuse, homeowners can expect to pay thousands of dollars more for insurance over the next five years.
Despite legislative action this session, the Florida Chamber and its Consumer Protection Coalition remain committed to stopping this scam and will continue fighting to stop AOB abuse by pushing lawmakers to enact reform next session.
How You Can Help
- Invest in the Florida Chamber’s Consumer Protection Coalition and help increase awareness of this scam, as well as solutions to reform the problem.
- Share this message with your friends, family and coworkers, and ask them to…
- Sign this petition to encourage lawmakers to stop AOB fraud and abuse, and protect consumers from rising homeowners rates.