The biggest expense remains the cost of "reinsurance" - which is the money an insurer spends with an out-of-state or foreign company to provide the company financial backing in case of major claims.
Other causes that have been cited include millions in other types of losses such as sinkholes. A Pulitizer Prize-winning series in 2010 by the Sarasota Herald-Tribune pointed out how insurers paid out millions in bonuses to company executives or had large overhead costs compared to the rest of the nation.
Plus, McCarty conceded all rate filings are allowed to include some percentage of profit for private insurers.
Sean Shaw, the former insurance consumer advocate for the state, put the blame on the Florida Legislature for siding too often with the insurance industry.
TALLAHASSEE, Fla.: 7 years without storms but Fla. rates keep rising - Florida Wires - MiamiHerald.comHIH POV:
The current Governor and State Legislature believe the private homeowners insurance market is viable if a storm should hit. Fact is we've been here before and the moment a storm hits our shores bankruptcy is their best solution to avoid paying claims. Citizens Insurance Corp is our only saving grace but the State government wants to dismantle the company as we know it. Click on the pulitzer.org link below to gain an awareness of how we're being fleeced and the worst part, it's all legal.
Reference Link:
http://homesteadishome.blogspot.com/2013/05/citizen-insurance-depopulation-update.html
http://www.pulitzer.org/archives/9194
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