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Blow Hard

Florida’s combative insurance commissioner, Kevin McCarty, sees no knockout punch from a major storm in his state’s future.

By  Ed Leefeldt

[Page 4 of 7]

Florida hasn’t had any hurricanes since 2007. Are you smart or just lucky?

We hope we are both lucky and smart. We are ahead of other states in preparation for catastrophes, and we’ve encouraged Floridians and insurers to be prepared.

What about evacuation?

In this state, we can’t run when a hurricane hits. There’s no way to ship 10 million people up the Interstate 95 corridor to Jacksonville.

You’ve worked closely with Gov. Crist. Pundits describe his maneuvering on insurance issues as “political genius” and you as his “avenging regulatory angel.” With Crist running for retiring U.S. Sen. Mel Martinez’s seat, is he getting out before the next hurricane hits?

I do not respond to pundits.

Your recent fight with State Farm ended with the state’s largest home insurer saying it would leave. Many Floridians didn’t want them to go. The legislature passed HB 1171, the “State Farm bill,” offering large insurers the opportunity to set their own rates. You sent a letter to the governor opposing that bill, and one state senator called for your head. What’s your side of the story?

Previously, State Farm had two rate increases totaling 70%. Their latest filing for a 50% rate increase was woefully unsubstantiated. Ask them why they would do this.

What do you think?

I think this was a ruse. State Farm’s withdrawal from Florida is a result of its exposure to hurricane risk. Even if they got unlimited rates they would still have to reduce their exposure in Florida by about half or nearly 400,000 homeowner policies. They just don’t want to take responsibility for the decision and have rather successfully blamed it on the denial of the rate filing.