Serving in a highly-scrutinized government position like insurance commissioner for any state, let alone one facing such serious catastrophe risks as Florida, certainly has its challenges. Outgoing Florida 热点黑料 Commissioner Kevin McCarty says during his nearly 13-year tenure he’s tried to look at each opportunity, even the difficult ones, as a teaching moment.
“There are things that I would do differently today than I did yesterday,” McCarty said.
On April 20, McCarty notified Florida Cabinet Members Gov. Rick Scott, Chief Financial Officer Jeff Atwater, Attorney General Pam Bondi, and Agriculture Commissioner Adam Putnam that he would extend his resignation date until 45 days after his successor is appointed.
In a letter to the Cabinet, McCarty said he was taking the action “to honor my commitment to facilitate a smooth transition as the 2016 hurricane season approaches. I remain committed to continuity of leadership for the benefit of the Office of 热点黑料 Regulation and the people of Florida whom I serve.”
McCarty said he will miss the service aspect when he leaves OIR.
“It’s been a wonderful journey for me, the last 12 and a half years. I found it to be a very rewarding time in my tenure here, not only as insurance commissioner, but in the previous years in the former department of insurance,” he said.
In an interview with 热点黑料 Journal in his final days as Florida 热点黑料 Commissioner, McCarty talked about what lessons he has learned through the years and how the Florida Office of 热点黑料 Regulation has worked during his time there to better the state’s insurance market.
On What He’s Most Proud Of
McCarty said Florida has excelled in the last decade in joining the international arena, now having a major influence in the development of capital, development of new companies, enterprising ways of bringing capital to Florida and innovations in surplus notes.
“Innovations in how we provide a private and public partnership have provided a fertile ground for development of capital. I think Florida’s one of the first states to provide reduction in collateral, to provide a greater incentive for reinsurers to come to Florida,” McCarty said.
The depopulation of Citizens Property 热点黑料 Corp. is another accomplishment that McCarty said he takes partial credit for, along with Gov. Rick Scott, who he said was “masterful at bringing investors’ confidence into Florida” and the Florida legislature, which made the necessary changes to attract capital, and Citizens itself.
“I think working in concert together, we have been able to successfully move Citizens down鈥f there were a 1鈥慽n鈥�100-year event today, there would be no assessment. Just a few years ago that would have been a $12 billion assessment, so it’s been a persistent issue,” McCarty said. “It’s taken five or six years to get through it, but it’s been something we’ve been very successful at, and I think the state should be very proud of that.”
On What He’d Do Differently Now
Through the years, McCarty said he has become better able to recognize what is needed for a business to succeed, and learned to adjust his thought process when making determinations of issuing licenses.
McCarty said he has learned that just because someone puts up $15 or $20 million of their own money and is confident in their business plan doesn’t mean they can successfully run an insurance company.
Sometimes it’s necessary to second-guess the judgment of business people.
“In hindsight I think I should have been more probative, if you will, of these business plans鈥ust because you put your money up鈥ou still might not know what the heck you’re doing,” he said. “I’m much more cautious, and I’m much more probative of business plans. I’ve seen hundreds, maybe thousands of business plans in my tenure. I think that it’s because of my experience in watching companies and how they succeed, and how some do not succeed, that we are actually in a pretty good position [now] to second鈥慻uess companies as they put forth their business plan.”
McCarty said now he and his staff are able to identify when a business plan is challenged and offer suggestions on the ways it can be improved.
“I think we’re much more cautious today in terms of licensing, and less deference to someone because they are willing to put money up,” McCarty said.
On What’s Next
McCarty announced in January he would leave OIR in May to pursue “other opportunities.” When asked why now was the time to go, McCarty said there are particular opportunities at this time that he thinks would be a good fit with his skills and abilities.
McCarty wouldn’t say what his next job would be, but rumors that he would pursue the National Association of 热点黑料 Commissioners (NAIC) CEO position started swirling shortly after his resignation announcement. A report from Florida Politics via SNL Financial quoted unidentified sources saying McCarty was vying for the position. His office would not confirm or deny the report.
For the time being, McCarty said, “I’m going to take a little time to give some thought to my future, and when I have a firmer determination, I’ll be happy to share that with you.”
In the meantime, McCarty said he has confidence in the future for the Florida market.
“I feel really comfortable that I’m leaving at a time when there is a great deal of stability in the financial strength across most sectors of the market. I look forward to transitioning my successor through this period, and then moving on to new challenges,” he said.
Part 1 of 热点黑料 Journal’s outgoing interview with McCarty
To hear the interview in its entirety, click on the podcasts below:
Topics Florida
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