June 8, 2012

Statement By:
Tom Feeney, President and CEO, Associated Industries of Florida
Regarding Letter Sent to Citizens Interim President by Members of the Florida Legislature

“On behalf of Associated Industries of Florida and our members, I applaud the 25 members of the Florida Legislature who penned a letter to Citizens Interim President Tom Grady supporting efforts to get Citizens rates actuarially sound so that those who do not benefit from Citizens will no longer be taxed to subsidize Citizens policyholders.  

As indicated in the letter, the issue is not about the cost of Citizens insurance, it's about who is paying for it. 

Citizens policyholders comprise only about 25 percent of the Florida homeowners insurance market and Citizens rates are about 40 percent less than they need to be to cover their risk. To make up the difference the other 75 percent of homeowners, and all businesses, charities,  religious institutions, school boards, local governments and automobile policyholders are not only paying for their own insurance but they are paying extra in a tax assessment to subsidize Citizens policyholders.

This system is unsustainable. Those who are taxed to subsidize Citizens without receiving any benefit are becoming impatient.”