Florida’s insurance regulator, answering the state’s CFO who wanted to know why lower reinsurance costs have not translated into reduced homeowners rates, said insurers have significant leeway in how they incorporate those costs into rates and any changes can take a significant amount of time to implement.

Insurance Commissioner Kevin McCarty, in a letter, sought to explain the role reinsurance costs play in the homeowners market after Chief Financial Officer Jeff Atwater questioned why there has not been a corresponding drop in homeowners’ premiums as prices for reinsurance has come down.

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