Florida Chamber of Commerce Insurance Summit Panel
BOMA Florida recently asked the co-chairman of their Insurance Committee, John Scott, to participate in an insurance panel discussion for the Florida Chamber of Commerce. BOMA Florida continues to be a resource for our local and state legislators in an attempt to lower commercial insurance rates. Below is John’s summary of his experience on the panel, which has been sent to us by BOMA Florida.
We must get together and support BOMA Florida in their efforts to address the insurance issues which face us both personally and at our properties. These efforts could be centered through a local Insurance committee or through a subcommittee of the existing Government affairs committee.
Should you have any interest in joining us and in working with BOMA Florida please let me know.
Regards,
Philip Porta
Government Affairs Chairperson, BOMA Miami-Dade
The following is from the desk of John K. Scott, RPA
From my perspective the conference went extremely well. However, the sponsors of the Florida Chamber meeting as well as 60% of the attendees were representatives of the insurance industry. Some of the highlighted topics and the information I received on them are as follows:
· National Risk Policy backstop – The insurance industry representatives pointed out that they are not supporters of this policy. Through the many BOMA Florida and BOMA International discussions our groups have had regarding this issue, I was able to enlighten the participants with many of the benefits of, and how much we support this policy.
· Annual Premium Deductions - We debated the premium reductions of 30% that one of the underwriters indicated has occurred already in Florida. I pointed out that my Clients have not seen this reduction across the board. Additionally, if it was directed at homeowners, where is it? As an owners of two properties in separate counties with separate insurers (Citizens, and another standard insurer), I’ve received nothing regarding reductions for either one.
· Insurance Company Profits - The insurance groups kept showing data from 1992 stating that they have lost profits overall through 2007, hence reasoning why they have spun off Florida from their national packages. Having Florida stand alone only benefits them profitability wise. Regardless, I questioned the data. Why were the 27 or more years prior to 1992, years of no hurricane damage claims not included in their profitability numbers. Why are they only beginning after 1992, the year of Hurricane Andrew, the worst natural disaster in US history before Katrina? I also pointed out that companies cannot pick and choose the areas to sell their services. In my business, I may lose money on one site to make money overall for my company. The insurance industry has made record profits over the last two years, perhaps they should put money into reserves to support Florida and still receive their huge profits.
· Long Term Solution - I suggested that the rhetoric needs to stop. The Governor's office and the insurance industry need to sit down and work together to come up with, mutually favorable, long term solutions, not reactive knee jerk consequences that we are all working through!
I have spoken with James Cox about contacting the Florida Chamber for photos from the session to make it available to be placed on the front page of the BOMA Local, State and International websites along with some of my responses. I hope this will be beneficial to BOMA Florida. Also, the NAIOP representative came up to me after the panel discussion and we dialogued about working together on the Hometown Democracy issue, property taxes and insurance. We look forward to collaborating since both of our organizations are working in the same positive direction!
John K. Scott, RPA