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State Farm Putting Profits Before People In Florida

By Eddie Farah

State Farm property insurance wants to leave Florida for greener pastures.

After major hurricanes in 2004 and 2005, State Farm Florida, a subsidiary of the insurance giant, says it will phase out offering property insurance to 1.2 million property owners within two years.

There is just not enough money to be made in the state, says the giant which claims its losing about $20 million a month. However State Farm wants to keep offering auto insurance, life and health, since it is not having a problem staying afloat with those policies.

While Gov. Charlie Crist says no one will miss them because they charge about the highest rates in the state, but the Governor gets to live in the Governor's mansion and doesnt have to buy property insurance. For the rest of us, there will be one less competitor to keep rates down. BTW- the insurer of last resort, Citizens, set up and supported by the state, will soon have a rate freeze lifted.

Which of us can afford to pay MORE for insurance these days? These precarious times is no time for business as usual - profits before people - because too many people are hurting.

Remember- this is the insurance industry, one of the most lucrative industries. State Farm paid its chairman an 82 percent raise in 2007 amounting to more than $5 million.

And what about saving for a rainy day? In a good year, most of us look to the future and tuck extra money away. The absence of any major catastrophes helped State Farm generate a record $5.32 billion profit in 2006.

But the state insurance commissioner might say State Farm must sell all types of insurance or none in the state. Also the legislature might put the brakes on the move, allowing insurers to drop a limited number of customers every year.

Is there any wonder why most Floridians don’t feel too sorry for State Farm?

Originally posted at InjuryBoard by Eddie Farah

Full post as published by Jacksonville Personal Injury Lawyer on January 31, 2009 (boomark / email).