News
State Farm Insurance - "Homeowner's Crisis"
Published: Wednesday, February 11, 2009
Cooler Minds Must Prevail
I am not one to react when I read local newspapers but I feel the need to voice my concerns. Recently, there have been comments regarding State Farm insurance's plan to pull out of the State of Florida if their rate increase of 47% is refused. In addition, Governor Charlie Crist's response was, "Let Them Go".
I do not know what magical number State Farm is working to receive. What I do know is, that the impact of losing one of Winter Haven's largest private companies would be an enormous set back to this community and its surrounding areas. When you think about the economic fall-out state wide, with unemployment rates already too high, it becomes a recipe for disaster.
Locally, State Farm employs about 1,700 at their Winter Haven Regional Headquarters. I have seen first hand the many community programs State Farm supports such as; blood drives, book drives, student mentoring program for our schools, just to mention a few. The dollars and man hours this company has provided to our communities could never be replaced if they decided to leave our state. Since 1962, State Farm has been a corporate leader in Polk County. They encourage their employees to take an active position within the community and they are some of our brightest community leaders. This corporation has led by example and Winter Haven is a better place because of it.
East Polk Committee of 100 has worked to better our communities by searching for the right businesses to call East Polk County home. State Farm certainly fits that bill. We understand that a company cannot hemorrhage 20 million dollars a month and continue to provide service to their customers. As one of those customers for over 20 years, I too would not want a 47% increase in my premium payments. There must be however, some compromise number that allows State Farm to make a margin and still provide for 1.2 million policyholders in the State of Florida.
The Florida property insurance market is a nightmare. This market is one hurricane away from causing a financial breaking point for our state. Governor Charlie Crist is a passionate politician who cares about the citizens of Florida. He has always watched over "Big Business" to ensure we are not swept up by them. That is his job and he does it well. However, when he blatantly makes a comment like "Good Riddance", it certainly does not bode well for compromise. The reality is that 1.2 million policyholders are about to lose their coverage or have to see what the State Office of Insurance Regulations works out with State Farm. OIR's decision of zero increase certainly is not the answer. Legislators need to find a workable solution for this crisis, the State of Florida's economic health depends on it.
Jack Barnhart
Executive Director
Tagged: State Farm, crisis, insurance