Auto Insurance

Letter to NAIC  Applauding Florida Insurance Commissioner for Directing All Insurers to Stop Price Gouging Consumers

Florida Insurance Commissioner Kevin McCarty has, in an official memorandum, directed all insurers to stop setting insurance premiums on the basis of consumer characteristics unrelated to risk – so-called “price optimization.” Commissioner McCarty’s memorandum explains that “the use of price optimization results in rates that are unfairly discriminatory and in violation of … Florida statutes,” because Florida law, as in other states, requires that insurance rates be based on expected risk and not what the market will bear.