Two momentous events occurred this week that are generating more conversations about climate change and the urgent need to understand and address the risks we all face. One of those events was the death of Tim Wagner, Nebraska Insurance Director, who also served as co-chairman of the Climate Changes and Global Warming Task Force of the National Association of Insurance Commissioners. The other event was the announcement that former Vice President Al Gore and a United Nation’s panel won the Nobel Peace Prize for their global work on climate change.

• For years, Tim's work has been at the forefront of addressing the impact of social and environmental issues on the insurance industry. In fact, through his wealth of insurance regulatory knowledge, we became more aware about climate risk and the insurance industry, re-evaluating the state’s risks in light of reports on the potential impact of climate change.

• Both Gore and the UN Panel deserve much credit for their efforts to increase awareness about the growing reality of climate change. If not for their efforts, many people would still be unaware of its increasing presence and real threat to our way of life.

Nearly seven months ago, with Commissioner of Agriculture Charles Bronson we began the first in a series of discussions on climate change and its impact on our state with the Florida Cabinet. Director Wagner was a speaker at the first workshop, and that meeting marked the beginning of public conversations, among elected officials in Florida, about the potential economic and environmental impacts and opportunities climate change may bring.

Next month, we will hold our final "Conversation on Climate Change" in Florida. This is a global issue, and we urge Floridians to participate and make their voices heard. The world is finally listening.

CFO SINK UNVEILS PROPOSAL TO REFORM FLORIDA’S CAT FUND

CFO’s proposal will allow Cabinet to reduce the potential for future assessments and better safeguard the state’s financial risk


Holding up a stack of property, auto and other insurance bills full of assessments, Florida Chief Financial Officer Alex Sink unveiled her proposal today to reform the Florida Hurricane Catastrophe Fund (Cat Fund), which could reduce the potential for future Cat Fund assessments on Florida’s insurance consumers.

CFO Sink’s proposal would give the Governor and Florida Cabinet the ability to set both the reinsurance levels and pricing of the Cat Fund’s optional coverages, giving greater flexibility and accountability to the management of Florida’s reinsurance fund. This move would also promote increased competition in the private insurance market.

“I hear all the time from Floridians who are wondering why they have to pay these taxes on their insurance polices,” said CFO Sink, who oversees the Department of Financial Services. “If we want to reduce the potential for future assessments, we need to reform the Hurricane Catastrophe Fund to allow us to be more nimble and respond to the volatile financial and insurance markets.”

CFO Sink is preparing legislation and will urge legislative leaders to implement the proposal during the upcoming special session. Additionally, CFO Sink announced that she will present her proposal at the Florida Cabinet meeting on October 16, 2007.

If approved by the Legislature before the end of the month, the reformed Cat Fund will begin evaluating financial and insurance market conditions and will recommend to the Governor and Cabinet the level and pricing of Cat Fund optional coverages for the 2008 Hurricane Season. The Florida Cabinet would make a final decision on by February 15, 2008, well in advance of the time when a majority of private insurers would negotiate their private reinsurance contracts. While CFO Sink’s proposal will change the operation of Florida’s Cat Fund, the structure and mandatory coverages created by the Legislature will not change.

“We talk a lot about taxes, but we don’t talk much about the potential for assessments,” said Florida’s Insurance Consumer Advocate, General Bob Milligan. “Floridians are facing these taxes every day, and CFO Sink’s proposal will allow us to better manage the state’s Cat Fund to benefit Florida’s consumers and promote certainty and stability in Florida’s insurance market.”

In January 2007, the Florida Legislature created and provided for the pricing of an additional $12 billion in optional reinsurance coverage available through Florida’s CAT Fund in an effort to achieve rate relief for Florida’s insurance consumers. Not only is the expected rate relief not being realized, but Floridians have taken on substantially more risk for future assessments from the CAT Fund.

CFO SINK ON GOVERNOR’S SIGNING OF NO-FAULT REFORM LEGISLATION

On Thursday, Governor Charlie Crist signed into law HB 13C, which makes crucial reforms to Florida’s Motor Vehicle No-Fault Law. 

Chief Financial Officer Alex Sink offered the following statement: 

“I applaud Governor Crist and our legislative leaders for their success in reforming Florida’s Motor Vehicle No-Fault Law.  Today’s reforms will better protect Florida drivers, institute cost controls and strengthen our anti-fraud efforts.  While the new law will benefit consumers, the reforms will not be in effect before January 2008.  During the next two months, I encourage every Floridian to contact their insurance agent or company to ensure they have sufficient coverage to protect themselves and their assets.”

ANNUAL FALLEN FIREFIGHTER MEMORIAL SERVICE HELD

Florida’s second female firefighter to die in the line of duty honored

Firefighters and families from all parts of Florida gathered Friday, October 12, 2007, at the Florida State Fire College in Ocala to remember the 137 firefighters who have lost their lives in the line of duty. While there were no deaths in 2006, two firefighters will be added to the wall this year, including the second female firefighter to lose her life as a result of firefighting efforts.

“It is a tribute to the effective safety efforts of state and local fire agencies that we had no on-the-job or job-related deaths last year, and I thank everyone involved in that good work,” said Florida Chief Financial Officer Alex Sink, who also serves as State Fire Marshal. “At the same time, I extend my condolences and heartfelt appreciation to the families, friends and communities who lost firefighters in past years. Your sacrifice will never be forgotten.”

Linda Hernandez of the Miami-Dade Fire Rescue passed away in September of 2001, following a long illness attributed to firefighting efforts in 1999. Also to be honored is J. Brinkley Price of the Seminole Fire Rescue in Pinellas County. Price lost his life following an incident in September of 1961. Both names will be added to the Fallen Firefighter Memorial at the Fire College in Ocala and to the Fallen Firefighter Wall of Honor in the Capitol in Tallahassee. The ceremony comes at the conclusion of Fire Prevention Week, which began Sunday and continues through Saturday.

The annual Fallen Firefighter Memorial was held at the memorial site in the Fire College courtyard. Honor guards, including bagpipes and drums, from across the state took part in the event. In a tradition that dates back more than 150 years, the ceremony concluded with the bagpipes playing Amazing Grace.