Florida Citizens officials are concerned that recently approved rate cuts may make the state-run insurer more competitive with private insurers, reports the Palm Beach Post. The worry is this could conflict with goals of moving as many customers as possible out of the state's insurer of last resort.
Overall, Citizens bills will be trimmed down an average of 1% statewide across all residential and commercial policies, says the Post. Multi-peril homeowners rates are set to drop 6.3% statewide if approved by state regulators for 2015.
Committee member Fred Strauss asked whether rate changes might work against "depopulation" efforts or affect a new clearinghouse, a computer system used by agents. The clearinghouse declares customers ineligible for Citizens if private insurers are offering comparably-priced policies.
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