By Nirvi Shah, Miami Herald
July 28, 2010
Castle Key Insurance needs less than half the rate increase it is requesting and Castle Key Indemnity doesn't need one at all, the state's insurance consumer advocate's office told regulators Tuesday.
Castle Key Insurance, which is writing few new policies in Florida, is requesting an average 33 percent rate hike. Castle Key Indemnity is requesting an average 18.3 percent increase.
Castle Key Indemnity said it needs to raise rates because, among other reasons, its surplus has been shrinking -- although the state hasn't had a major hurricane since 2005 -- because of claims unrelated to storms.
In addition, many premiums have been reduced because of credits for weatherproofing homes.
Castle Key Insurance is Florida's sixth-largest insurer with about 152,500 policies. Castle Key Indemnity is the 23rd-largest, with about 73,500 policies.
It will be several weeks before state regulators decide whether to grant the companies' requests. Comments about the request can be made through Aug. 3 by e-mailing ratehearings@floir.com. Put ``Castle Key'' in the subject line.
Next month, Royal Palm Insurance will ask the state for an average 21.7 percent rate increase. The company is the state's 11th-largest insurer with about 114,000 polices across the state.
To submit a comment or question for the Aug. 5 hearing, e-mail ratehearings@fldfs.com and put Royal Palm in the subject line.
In another move that could affect homeowners' premiums, the board of Citizens Property Insurance on Monday approved an average 8.4 percent hike in rates, which includes decreases in rates in some parts of the state.
The state-run insurer, Florida's largest, has more than 1 million policies.
Insurance regulators would have to approve the increase for it to take effect, but first Citizens has to file the request with the state, which could take several weeks.