Reinsurance News
Florida reinsurance news
All of our Reinsurance News related to the Florida insurance marketplace, featuring news and analysis of the annual June renewal season, as well as Florida-specific stories.
Reinsurers must impose meaningful price differentiation in Florida: Demotech
15th May 2019
Reinsurers have thus far failed to impose meaningful pricing differentiation on Florida-focused insurers, according to financial analysis firm Demotech, but must do so to avoid the further commoditisation of catastrophe risk. Analysts noted that reinsurance and insurance-linked securities (ILS) may boost short-term profits by applying price increases across the board, but ... Read the full article
Florida AOB reforms could reduce homeowners rate need by 15%: Citizens
30th April 2019
Citizens Property Insurance Corporation has praised Florida lawmakers for passing legislation to curtail unnecessary litigation and assignment of benefits (AOB) abuse, which it claims will provide relief for property insurance policyholders in the state. Actuaries estimated that the reforms would reduce the statewide average rate need from 25.2% to 10.1% for ... Read the full article
Universal’s Jon Springer highlights speculation around mid-year rate movements
30th April 2019
Speculation remains around the magnitude of rate movements at the mid-year 2019 reinsurance renewals, underpinned by the potential impact on pricing from recent legislation targeting assignment of benefits (AOB) abuse in the state of Florida, according to Jon Springer, the President and Chief Risk Officer (CRO) of Universal Insurance Holdings, ... Read the full article
Carriers better able to estimate loss costs after AOB reform: Fitch
29th April 2019
Fitch Ratings believes that insurance carriers in Florida will be able to better estimate loss costs following the passage of a new bill designed to curtail unnecessary litigation and assignment of benefits (AOB) abuse in the state. The reforms will limit the ability of third-party service vendors to take advantage of ... Read the full article
Florida insurers welcome reform to address AOB abuse
25th April 2019
The Florida Property & Casualty Association has commended the Florida Legislature for passing a reform that aims to address assignment of benefits (AOB) abuse in the state. The legislation is expected to help stabilise the recent explosion in AOB litigation and provide policyholders with the tools to protect themselves against predatory ... Read the full article
Florida House of Representatives pass bill targeting AOB reforms
12th April 2019
The Florida House of Representatives has passed legislation designed to tackle the state's assignment of benefits (AOB) issue, increasing the likelihood that needed reforms are enacted into law this year. At the same time, the House passed a bill that looks to increase the reimbursement of loss adjustment expenses (LAE) that ... Read the full article
Rate adequacy progress offset by rise in non-weather losses & AOB: Citizens
21st March 2019
Depopulation efforts and rate adequacy progress have been more than offset by a significant rise in non-weather water losses in South Florida, driving a need for rate increases, warns Citizens Property Insurance Corporation (Citizens), the state-run not-for-profit insurer. Despite Citizens' combined Hurricane Irma and Michael losses topping $2 billion, the firm's President, Chief ... Read the full article
Hurricane Michael claims exceed $6bn: FLOIR
19th March 2019
The Florida Office of Insurance Regulation (FLOIR) has revealed that insurance claims from Hurricane Michael have now exceeded $6 billion, up from the $5.53 billion of insurance claims recorded in early February. According to figures from the FLOIR, which is based on claims data reported by insurers that operate in the ... Read the full article
Demotech increases Floridian insurer reinsurance requirements
12th March 2019
After reviewing several years of past reinsurance purchases by Floridian insurers within its rated universe, Demotech, Inc. has decided to increase its first-event reinsurance requirements to protect against a 1-in-130 year loss event. The increase in 2019 compares to a previous mandate that required Floridian insurers to have catastrophe reinsurance protection ... Read the full article
90% FHCF participation will have a “positive impact on reinsurance pricing,” Heritage CEO
5th March 2019
Heritage Insurance Holdings, Inc. has doubled its Florida Hurricane Catastrophe Fund (FHCF) participation to 90%, a move the insurer expects others to follow and one that is likely to have a very positive impact on reinsurance pricing, according to Chairman and Chief Executive Officer (CEO), Bruce Lucas. Speaking during the Florida ... Read the full article
Expect Floridian insurers to report loss reserve strengthening: Demotech
28th February 2019
Analysts at regional and specialty insurer-focused financial analysis firm, Demotech, Inc., expect Floridian property insurers' 2018 results to include further loss and loss adjustment expense reserve hardening. At the same time, the firm warns that regardless of any changes to the cost of catastrophe reinsurance protection, it will not relax its ... Read the full article
Irma loss creep & AOB costs to drive up primary rates in Florida, says COIN Re
21st February 2019
Unprecedented levels of loss creep stemming from Hurricane Irma, as well as costs related to loss adjustment expenses and assignment of benefits (AOB) lawsuits, are likely to drive up insurance rates for Florida homeowners, according to reinsurance broker COIN Re. Analysts at the Florida-based broker, which was launched in October ... Read the full article
Florida insurers remain stable due to reinsurance protection, reports Demotech
19th February 2019
Financial analysis firm Demotech has affirmed the financial stability ratings (FSRs) of 51 Florida property insurers after reviewing the quality and quantity of the companies’ reinsurance protection. Based on its compilation of the year-end 2018 financial information of these carriers, Demotech concluded that their reinsurance programs were sufficient to expect reimbursement ... Read the full article
Florida regulator pegs insured Michael losses at $4.9bn
11th January 2019
Total re/insured losses resulting from Hurricane Michael in Florida are estimated to be approximately $4.9 billion, according to data compiled by the Florida Office of Insurance Regulation (FLOIR). The state regulator’s estimate is based on information from claims data filed by insurers, and shows that a total of 136,873 claims have ... Read the full article
Florida’s 135,000 AOB lawsuits in 2018 fuelling a re/insurance crisis
13th December 2018
Abuse of Assignment of Benefits (AOB) in Florida has fuelled an insurance crisis that is acting as a “hidden tax” on consumers and helping to increase what are already some of the highest insurance premiums in the country, according to a report by the Insurance Information Institute. According to the report ... Read the full article
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