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.
Our Subject Matter Experts
Related Articles
Redlined
The Persistence of Racial Inequality in the Cost of Homeowners Insurance
Black and Hispanic Homeowners Pay Hundreds of Dollars More Annually for Homeowners Insurance
“Racial Premium Gap” Adds Up to $15,000 in Additional Insurance Costs for Black Consumers and $28,500 for Hispanic Consumers Over a 30-Year Mortgage