Jeb Bush hammers Crist on insurance
The ex-governor tells insurance leaders he doesn't support his successor's policies.
By TOM ZUCCO, Times Staff Writer
Published September 19, 2007
In the nine months since he left office, former Florida Gov. Jeb Bush has kept silent on the issue of how the current governor and Legislature are handling what had become Bush's biggest challenge: the state's ongoing property insurance crisis.
That all changed this week.
And Bush, the two-term Republican, doesn't like what he sees.
Addressing insurance executives Monday as keynote speaker at the National Association of Mutual Insurance Companies convention outside Dallas, Bush criticized Florida's latest efforts at insurance reform - specifically a January special session bill that doubled the state's catastrophe fund to $32-billion and allowed state-backed Citizens Property Insurance to directly compete with the private market.
That is a reversal of Bush's stance when, as governor, he focused on private market solutions, no expansion of the CAT Fund or Citizens, and a state-funded program to help homeowners make their houses more hurricane resistant.
Like other critics -- mostly in the insurance industry -- of the reforms of early 2007, Bush argued that expanding Florida's role in the property insurance market will put the state at considerable financial risk if Florida is hit by one or more major hurricanes.
Such solutions "are as bad as the natural disasters themselves," Bush said, adding that "My beloved state of Florida has taken steps along that path."
Without mentioning Gov. Charlie Crist by name, Bush still took aim at the current Republican governor, who inherited the property insurance problem and has all but declared war on State Farm, Allstate, Nationwide and other large insurance companies operating in the state.
The special session legislation championed by Crist will produce "unintended consequences and greater problems in the longer term," Bush said. "The more risk that is concentrated within the public domain, the greater the burden to taxpayers to pay for the cost of rebuilding after a devastating hurricane." Highlights of Bush's remarks were published on Bestwire, an insurance industry wire service run by A.M. Best.
Asked Tuesday about Bush's comments, Crist, who was elected largely on the promise of protecting homeowners from the insurance industry, said he didn't take Bush's remarks personally.
"I saw where he Bush had made some comments about the insurance industry, and I'm also concerned about the insurance industry," Crist said. "I think every Floridian is concerned about the insurance industry. We're trying to do the very best we can to give a market to consumers that is affordable and that is fair."
Bush on Monday also offered some praise to state Reps. Dennis Ross and Don Brown, the only two lawmakers who voted against the legislation, calling them "the most knowledgeable members when it comes to insurance issues."
Brown, R-De Funiak Springs, is an insurance agent, and Ross, R-Lakeland, is a lawyer who specializes in insurance litigation.
"I felt reasonably sure what Gov. Bush's position was before he said it, so it doesn't surprise me that he sees the same danger I saw," Brown said Tuesday.
"I hope his comments will spark a new round of dialogue about the wisdom of it. With current attitudes, it's not impossible. But it's not likely. A course has been charted based on what I feel is very foolish public policy," Brown said.
"Do you want to be popular or truthful? In this case, being popular has won out."
House Speaker Marco Rubio, a West Miami Republican, also agreed, albeit carefully, with Bush's criticism. Rubio acknowledged the special circumstances facing Florida but added, "I have always said that I'm concerned about the expansion of Citizens, not just from an intellectual, ideological standpoint, but from a practical one," Rubio said Tuesday. "You now have the state of Florida as the single largest home insurer in the state and growing at a massive rate. I think that has serious economic implications."
Largely forgotten is one other solution Bush and several lawmakers offered in the closing days of the 2006 legislative session: mail every homesteaded property owner a check for $140, supposedly to defray insurance costs.
That idea died when it was learned it would cost the state millions to mail the checks.
Since leaving office in January, Bush has joined the board of Tenet Healthcare Corp., the nation's largest publicly traded hospital company. He also serves as a member of Lehman Brothers' private equity advisory board.
Times staff writers Steve Bousquet and Alex Leary contributed to this report. Tom Zucco can be reached at zucco@sptimes.com or (727) 893-8247.