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Two insurers retreat on bid to raise homeowner rates

TALLAHASSEE, Fla. – Aug. 20, 2007 – Two homeowners-insurance companies have withdrawn requests to increase their rates.

The Florida Office of Insurance Regulation said Friday that Amex Assurance Co. and IDS Property Casualty Insurance Co. withdrew their requests to raise rates for residential policies by 49.1 percent.

When the state made $12 billion in reinsurance available to insurers in January, the companies told the Office of Insurance Regulation how much they expected to reduce their rates as a result of the cheaper reinsurance.

Reinsurance is the coverage insurers purchase to help them pay out large claims.

In their initial filings, Amex and IDS indicated they would be able to lower rates by 26.1 percent. In subsequent filings, the companies had said that rate-reduction amount was incorrect, and that they would need to raise rates by 49.1 percent.

After Amex and IDS dropped their rate-increase requests, the Office of Insurance Regulation canceled a public hearing it had scheduled for Aug.21 to discuss the companies’ filings.

Copyright © 2007 The Orlando Sentinel, Fla., Anika Myers Palm. Distributed by McClatchy-Tribune Information Services.