The announcement that four private insurers were willing to snatch tens of thousands of policies out of the state-run Citizens Property Insurance Corporation is being greeted as wonderful news within the insurance industry. After all, the private marketplace is supposed to be where consumers could get a better price instead of relying on the insurer of last resort. The companies' decision is also being seen as a sign of an improving market because insurers are willing to take a chance in writing policies in some riskier geographic areas of the state. Such was the response when the four companies recently stepped forward with proposals to take out 175,000 policies from Citizens.

Insurance Commissioner Kevin McCarty wasted little time in calling the companies' actions great news. “It is proof that the private insurance industry believes it can succeed and be profitable in Florida,” he said. “Consumers will be offered policies at rates that are at or below Citizens' current rates.”

While there are many who are lined up in agreement with McCarty, and see the latest development as the first sign that the private market is rebounding despite all the rhetoric to the contrary, the latest “take-out” companies are being greeted in other quarters with a measure of skepticism and caution. After all, two years without a hurricane does not a trend make. And besides, there are two other reasons to be wary, namely price and security. Agents are quick to point out that neither is guaranteed with the new companies.