TSN : Floridas new insurance sector may be accident waiting to happen: By Barbara Liston ORLANDO Fla. (Reuters) - As Florida seeks to revive its private home insurance market after almost a decade without a hurricane, homeowners are pouring $6 billion a year in premiums into a new generation of small, in-state insurance companies with an unproven record of withstanding a major hurricane. A consumer-oriented rating agency, Weiss Rating, recently awarded the companies a median grade of C-minus, and even without a major storm to drive up claims, 11 of them have already failed in Florida since 2006, according to state records. “This is an accident waiting to happen, said Gavin Magor, senior financial analyst with Weiss, a national agency with a reputation for tough ratings based in Jupiter, Florida. Responding to the Weiss ratings, Robert Hartwig, president of the Insurance Information Institute, a trade association, said all the companies meet state regulations, noting that other rating agencies gave higher grades.
Posted on: Thu, 11 Sep 2014 11:19:35 +0000
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