Two Florida primary property insurance focused carriers have stopped writing new business, with Southern Fidelity explaining this is until it can secure the necessary reinsurance it needs for the hurricane season.
With Florida’s legislature having passed a package of reforms that the market is now coming to terms with, the promise of new laws were not enough to keep the underwriting books open it seems.
Southern Fidelity, which is one of the Florida insurance carriers owned by insurance-linked investment manager Hudson Structured Capital Management (investing as HSCM Bermuda).
Southern Fidelity has been in the catastrophe bond market, seeking to bring the capital markets into its reinsurance arrangements through a securitized issuance, but that deal launched to investors around May 10th and as yet we haven’t heard any updates.
According to reports, Southern Fidelity said in a filing that until it has secured the necessary reinsurance it needs, it would not be writing new or renewal business across all lines in Florida.
People’s Trust, another of the larger carriers in the state, is also reported to have ceased its writings in Florida on May 19th as well.
Reports suggest Southern Fidelity has the reinsurance commitments it needs, but escalating costs of coverage means it needs to make a fresh rate filing before it can begin underwriting again.
The fall-out of Florida’s property insurance crisis continues and consumers are again being affected.
How helpful the reforms that the legislature passed last week will be, remains to be seen.
Read our coverage of Florida’s property insurance crisis below:
Florida insurance reforms signed into law, uncertainty to persist.
Reforms won’t have immediate positive impact on reinsurance in Florida: Survey.
Florida property reforms pass House, but reinsurers to remain sceptical.
Florida insurance reforms pass Senate, but may not save all carriers.
Florida’s insurance carriers over-litigated, not under-capitalized: Demotech’s Petrelli.
Florida insurance bills pass first hurdle. But details to matter.
Florida: Some carriers are on life support, others about to pull the plug.
Florida’s special session property insurance reforms: Opportunity lost?
Florida Citizens CFO says risk transfer markets in “disarray”.
“Really significant” property insurance reforms for Florida: DeSantis.
Florida “flash point” as reinsurance market begins to throw in the towel: ALIRT.
FedNat details Florida downsizing plan, says Monarch to be acquired.
Florida Special Session to focus on fraud, AOB abuse & affordability: CFO Patronis.
More insurers seeking rate hikes of 23% to 49% in Florida.
Cat Fund reform is crumbs, Floridians need a feast: Demotech’s Petrelli.
Florida litigated claims rise again, but “hope” in Special Session: CaseGlide.
Florida – “The theatre is on fire,” FHCF change won’t solve it: RenRe CEO.
Swiss Re not optimistic on Florida reinsurance pricing: CFO Dacey.
To ensure progress in Florida reinsurers could pull capacity: Assured Research.
Full placement of Florida reinsurance programs to be challenging: AM Best.
Florida Governor sets property insurance special session for end of May.
“Cause for concern” as AOB & litigated claims rise in Florida: CaseGlide CEO.
Ida insolvencies continue, as Florida runs out of road: ALIRT.
Florida property insurance market “in collapse”, special session uncertain.
Florida renewal “one of the toughest in recent memory” – JMP Securities.
Demotech calls for Florida market reform with rating downgrades likely.
No quick fix as Florida property insurance reforms fail to pass.
Another one bites the dust – Florida’s insurance failures continue.
Assignment of benefit (AOB) claims rising for Florida P&C insurers.