The Governor of Florida Ron DeSantis expects the special session of the legislature will deliver “really significant reforms” to Florida’s property insurance sector, that he believes can stabilise the marketplace there.
As we’ve been explaining, DeSantis set a special legislative session for later this month, with the primary goal of reforming Florida’s dysfunctional and litigation heavy property insurance market.
The focus of the session looks set to be largely on fraud, litigation and assignment of benefit (AOB) issues, all of which have plagued the state of Florida’s property insurance landscape in recent years.
Which is promising, but our sources also suggest it will take time for the effects of these changes to filter through and for carriers portfolios to become cleaner.
All of which means the reinsurance market has been pulling back and is on the verge of throwing in the towel on Florida.
But Governor DeSantis is confident, it seems, saying in a speech yesterday that he believes the special session will yield far more meaningful reforms than a package of laws passed in 2021.
DeSantis said, “We have a special session on property insurance reform. This is a market that has been problematic in this State for a long time. Some people have seen obnoxious rate increases. Par too the reason that happens is because we don’t really have a competitive market, a lot of these major companies have left the state because of how hostile the underlying framework is.
“We have 8% of the property claims nationwide and 78% of the litigation nationwide. That is causing these premiums to escalate, and so we have to address that, it’s something that’s very important.
“We tried to address that in the regular session and were unsuccessful. People said are you going to do a special session and I said if I know we’re going to be able to get it done, I will.”
He went on to explain that he wouldn’t have called the session unless he felt it was feasible to pass meaningful reforms.
“Once I knew we had a framework in place to be able to property insurance, we went ahead and did that,” he explained.
Adding that, “Failing is not an option. The good news is, on property insurance, I think we’re going to get really, really significant reforms.
“We did a package last year that had some good stuff, I think there were some positives that came out of that, a couple of companies came in and started policies off the back of those reforms, but it just didn’t do enough to realise stabilise this situation, so that’s what we’re going to try to do.”
Read our coverage of Florida’s property insurance crisis below:
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.
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