Archives for May 2011

Sen Richter’s response to Senator Fasano’s letter requesting a veto of Sb-480

The following letter was received at Johnson Strategies in an email but JS has not verified or confirmed its authenticity with Senator Richters office.  Still…it is an accurate critique of Senator Fasanos’ letter to Governor Scott and is reproduced here for that reason.

I recently read Senator Mike Fasano’s op-ed attacking the property insurance reform bill, and I cannot simply watch from the sidelines as a 17-year career politician mischaracterizes and demonizes badly needed public policy reform. There were many false statements surrounding Senate Bill 408 recently published in Tampa and Sarasota-area publications, and I want to follow up by providing factual information regarding this legislation. Let me begin by addressing many of the points Senator Fasano misrepresented.

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Frankly, Florida’s ailing property market is the result of many underlying causes.  You’re familiar with the list and many of the solutions. Some items are subject to debate, particularly when it comes to priorities, but…conspicuous by its absence is hurricanes.  Another season has ended bringing us to the five year mark without a wind event of any kind. Yet, loss frequency is up nearly 30%; severity is up 30%; the average loss per policy is up nearly 70%. The results are that we’ve had more rate increases and insolvencies after five years of no storms than we had after two years in which eight hurricanes ravaged our state.

What happened? Why have the losses for such traditionally profitable perils deteriorated so precipitously, and…only in Florida?

To find the answer we must go back to 2005. [Read more…]


Due mostly to  the proliferation and growing problems associated with Public Adjusters (PA’s), lawmakers directed the state Office of Program Policy and Government Analysis (OPPAGA) to study and report findings–which it did on February 1, 2010.  OPPAGA was careful to keep judgments and opinions out of its report but, not careful enough to prevent distortions of its  conclusions.

One data point attracting both attention and exploitation (by  “some” PA’s) misleads consumers to conclude a public adjuster averages 747% more payout on claims–a mistruth advertised by at least one PA as being…”according to a government study“.   Here’s the relevant paragraph from OPPAGA’s report:

[Read more…]

Scott’s 777 Plan & Citizens Outsourcing

Let’s face it, Citizens is not only a major employer, it is a major player in Florida’s insurance market and therefore is ripe for review as we look for more private sector jobs. Governor Scott’s 777 Plan features 7 steps  to achieve 700,000 jobs over 7 years and cites the following:

“Government run wind insurance has driven private insurers out of the market and will result in an enormous tax increase or auto insurance rate increases if we get hit with a major hurricane or a number of costly hurricanes.”

Insurance is a “clean” industry that doesn’t pollute the atmosphere or consume Florida’s natural resources. Yet, it is a major contributor to Florida’s economy. The latest annual report of the state Office of Insurance Regulation (OIR),  contains the following : [Read more…]