Strategists Wonder What Role Insurance Issues Will Play in Fla. Governor's Race

20 January 2006

With hurricane insurance coverage, mounting insurance rates and legislation to regulate insurers taking the limelight in Florida, political strategists are wondering what role Florida CFO Tom Gallagher's response to insurance issues will have on his run for governor.

This Friday, Gallagher and his chief opponent Attorney General Charlie Crist will face each other in debates taking place at the Florida Association of Realtor's Conference in Orlando.

Insurance Journal has followed Gallagher's numerous efforts to cope with hurricanes in 2004 by holding town hall meetings, making several proposals to the Florida Legislature to control insurance rates and deal with Citizens Property Insurance Corp. rate hikes.

According to the St. Petersburg Times, a review of 2005 campaign contributions for the candidates for governor show that those deep ties are also mighty helpful for Gallagher, the Republican chief financial officer and former state insurance commissioner.

Companies and people connected to the insurance industry gave Gallagher at least $488,000 last year. Only real estate and development accounted for a greater share of Gallagher's campaign money, with more than $800,000.

"If you examine anyone's contributions, you find they receive contributions from the people they know and they work with," Gallagher campaign spokesman Albert Martinez told the Times. "People know that Tom Gallagher has a record of fighting for consumers in this state and he's the only candidate who's announced a plan to deal with rising insurance rates."

Meanwhile, lawyers are heavily bankrolling Republican gubernatorial front-runner Charlie Crist, who last year raised $6.86 million, compared with $5.29 million for Gallagher. The attorney general has received at least $753,000 from lawyers and law firms, roughly $94,000 from insurance interests, and more than $633,000 from real estate and development interests.

Gallagher allies criticize Crist for raising money from such high-profile personal-injury lawyers as John Morgan in Orlando. But doctors tend to be among the professions most hostile to trial lawyers, and they gave $272,000 to Crist -- more than twice what Gallagher reported receiving.

"Sixteen-thousand people from every walk of life and every area of the state are supporting his campaign," Crist's campaign spokeswoman, Vivian Myrtetus said.

Lawyers overwhelmingly dominate the contributors to Democratic gubernatorial candidates U.S. Rep. Jim Davis of Tampa and state Sen. Rod Smith of Alachua.

Among the notable trends for the Democrats, Smith still is relying heavily on agricultural interests for money, about $75,000 for the chairman of the Senate agriculture committee, while Davis is proving how much stronger a financial base Tampa Bay is than Smith's home turf in Gainesville.

About 60 percent of Davis' $1.6 million raised in 2005 came from Central Florida, including Tampa Bay, while just 37 percent of Smith's $1.3 million came from the region. Smith has raised more money in South Florida: more than $520,000, compared with $420,000 for Davis.

Out-of-state interests are playing hard in Florida's gubernatorial campaign. About 16 percent of Crist's contributions, more than $1 million, came from out of state, compared with 14 percent for Gallagher, 9 percent for Davis and 4 percent for Smith.

For some of that outside money, Crist apparently can thank the hefty Rolodex of Sembler Co. founder Mel Sembler of St. Petersburg. The developer and longtime Republican fundraiser's son, Brent Sembler, are leading Crist's fundraising effort.

Crist also received $18,000 from numerous Southfield, Mich., apartment complex companies with ties to a firm with extensive gambling interests. Among them: the Hollywood Greyhound Track in Broward County, which stands to benefit from new voter-approved slot machines.

In Florida, Crist raised 44 percent of his money from South Florida, 42 percent from Central Florida and 14 percent from North Florida. Gallagher raised half his money in South Florida, 27 percent in Central Florida and 22 percent in North Florida.

Source: insurancejournal

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