Florida insurer price freezes on alert
Florida, the Commissioner of Insurance unusual action yesterday the freezing of prices and premiums, by one of the greatest nation insurance companies, American International Group.
The commissioner warned that other Property Casualty insurers in the state that the regulatory authorities would disclaim any unjustified increases sought in connection with the devastation by Hurricane Andrew.
The Commissioner action against A.I.G. from the publication of an internal memo that the company describes Hurricane Andrew as “an opportunity for price increases now. The message was sent by a group of consumers and last week.
The note written on the day of Hurricane forge billions of dollars in damage in south Florida, was cited by consumer associations as evidence that AIG, and maybe also other companies, intended for use of the hurricane as a pretext for the fee is not justifiable sentences.
The president of the New York-based, AIG, Maurice R. Greenberg, explained the importance of the note was taken out of context. He was greeted by his son, JW Greenberg, Executive Vice President, and was the best business leaders.
For years, the elderly Mr. Greenberg argued that the premiums collected from customers were insufficient, and he said yesterday that the new message to society for a long time.
In another announcement yesterday, State Farm, the company with the largest private owner and motor vehicle insurance business in Florida, said Andrew’s losses, totalling $ 1.2 billion as a result of over 110000 requests. William Sirola, a spokesman for the company said that the state has not been directly firm plans to raise prices.
In yesterday’s action against AIG, the Florida Insurance Commissioner Tom Gallagher, said he and Florida’s Attorney General, Robert A. Butterworth, would examine whether the company is, try to increase their prices excessively, and if the offence was a state agreements laws.
In all cases, a division spokesman said Gallagher showed the note felt a coldness in the part of Executive of the human tragedy which is in Florida.
“AIG and other companies sell, trade, materials and auto insurance in Florida, the better this message now,” said Gallagher. “We do not tolerate, every company tries to benefits for our citizens in the wake of this tragedy”.
Mr. Gallagher’s erstarrte for prices and premiums, AIG in the state for 60 days. The commissioner announced that he would make a public consultation on the matter. Florida law allows companies, phrases, and then file with regulatory authorities, then they can refuse.
The Commissioner also today a letter to 780 business leaders of the Company to sell licensed, damage and accidents in Florida. In his letter, he warned that his department would disclaim any efforts by the insurance industry to “capitalize on the disaster of Hurricane Andrew’s victims” unjustified increases.
The note is the last battle in a war between consumer associations and industry in the country Property Casualty across the nation. Consumer activists, like Robert J. Hunter, the chairman of the National-Versicherungs-Organisation of Consumer Protection, which the memo last week, Ralph Nader, have argued that insurers over as the best current yields. Worry About capital
The assurance of the economy and most Wall Street analysts and economists follow the industry indicate that at least in certain types of insurance, industrial customers where competition in recent years, believes that prices so low that over the long term if prices do not, it is difficult for industry to acquire and stay healthy.
Immediately after Hurricane Andrew met ashore August 24, stocks of many large insurers rose in the hope that the storm caused extensive damage to the industry depletion of capital and change the psychology market, so that the price increase Property Casualty. But most analysts are now saying they doubt Andrew alone - as expected, with nearly 8 billion dollars in insured damage in Florida and Louisiana - to increased premiums.
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