Fidelity National Property and Casualty Insurance Co cover around 12,000 homeowners in Florida. This Jacksonville based company is now observing a 275 rate increase.
Fidelity National Vice President John Giorgianni is happy about the increase as the company lost some $17 million last year and is also hopeful that regulators will grant the increase so as to continue providing Florida denizens with homeowners insurance.
But Fidelity National Vice President was let down when Steve Alexander, an actuary with the state's Insurance Consumer Advocate's office only granted a 12% increase. Alexander brought in light the relationship of Fidelity National's relationship with its managing general agent. It has also been reported that the company paid $31 million to the MGA and other administrative services.
He also that MGA should be paid a fee and not commission and so getting a hike of 12% is justified.
Giorgianni, on the other hand, has supported this by saying that it should not come off as a surprise for everyone and also that he has been paying of MGA's dividends with the money that it receives for the National Flood Insurance Program.