The majority of governmental actions are highly technical and, therefore, the general public rarely notes most public-policy decisions. This is especially true when those legislative actions are made against the backdrop of an even larger problem such as the course of homeowners' rates. A long slate of insurers are seeking double-digit rate increases, included the big three, Citizens Property Insurance Corporation, State Farm Floridian, and Allstate Floridian Ins. Co. And regardless of how each of insurers may vow to eventually lower rates, those promises ring hollow to the state's many policyholders who are facing higher premiums, and, in some cases, are being force to evaluate whether to continue making Florida their home or corporate headquarters.

At the recent Florida Surplus Lines Association annual meeting, Citizens Board Chair Bruce Douglas put it bluntly, "Rates are not going down and anybody who says they should go down, doesn't understand they need to go up." Douglas' comments came just before Insurance Commissioner Kevin McCarty slashed the market of last resorts' requested for an overall 25.9 percent increase in homeowners' policies in Monroe County, calling instead for a 32.2 percent reduction. Likewise, McCarty agreed to a 15.2 percent increase in mobile home rates, although Citizens had initially asked for a 20.4 percent increase. Since Monroe County basically covers the Florida Keys, there is no viable voluntary market. Citizens currently has filed a rule challenge with the Department of Administrative Hearings on the issue.

In all fairness to McCarty, earlier this year he ordered a statewide average 16.1 percent increase in homeowners' rates and a 6.7 percent in mobile home rates. He also approved a 21.5 percent increase in dwelling and fire rates and made no adjustment in condominium rates. Citizens' rate determinations are set out in the law and must not be competitive with the private market. "Our actuary staff has rigorously examined these rates, and I am confident that the approved adjustments achieved adequate rates given the risks involved," he said.