The Real Deal Miami

Insurers sound warning note

May 18, 2009 12:17PM

Representatives from the Florida Association of Insurance Agents and the Consumer Federation of the Southeast said the state’s curbs on property rates leave insurers open to serious liabilities if Florida is hit by major storms. The low rates have created a fragile system of insurance that leaves Florida homeowners and taxpayers at great financial risk, said Jeff Grady, president and chief executive officer of the Florida Association of Insurance Agents. He said insurers such as State Farm had been driven away as the state kept rates down.