Q: Are regulators and legislators ready to push forward for a federal -- or at least a regional -- catastrophe fund?

A: With Katrina, we could see just how bad a bad storm could be. It has people very skittish about investing in markets that are subjected to that kind of devastation and have no federal backstop.

We have to continue to explore the federal and regional catastrophe fund as a backstop. [At the NAIC meeting,] I talked to most of the insurance commissioners from Texas around the Gulf Coast, and up the East Coast through the Carolinas and Massachusetts. They're all having problems in their insurance markets, and they're all very interested in exploring the possibility of a regional, if not a federal, catastrophe fund.

We definitely have the environment where we can make it happen. I was very encouraged to hear that people are ready to talk.

It may not provide relief for Floridians this year. But certainly in the intermediate and long term, it could be just what the doctor ordered to get more private insurers back into our state.

Q: How much can reasonably be accomplished during the special session that starts next week -- and is even a slight reduction in rates possible?

A: Expanding our Cat Fund to make cheaper reinsurance available could very well result in a slight reduction of rates.

The companies at the NAIC indicated to me there would be more capacity in the reinsurance market this year. I'm hearing 10 [percent] to 15 percent decrease in the rates for '07.

The proof of the pudding will be if we consumers see those reinsurance rate decreases, however modest, flow right through the policy pricing.

Q: Can the Legislature or the state's insurance regulators require insurers to pass along those savings?

A: We have an insurance commissioner in this state. He approves the rates. I think our insurance commissioner needs to hold the feet of the insurance companies to the fire, especially those who are taking advantage of the state-sponsored Cat Fund.

Why have a state-sponsored program if our citizens aren't going to achieve the direct benefits from it? Then it's just profit money going back into the pockets of the insurance companies.

That's just not the intention of us putting our good state name at risk for no benefit to our citizens. To me, that's the bottom line.

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