assignment of benefits


Florida Citizens 17% growth in 2020 may drive reinsurance requirements

Florida’s Citizens Property Insurance Corporation is likely to see an increasing need for more risk transfer and reinsurance over the coming year, as it forecasts that its assumption of risk and policies will accelerate, with the state of the Florida insurance market set to drive its portfolio up by 17% read the full article →

Florida rates may still not cover true cost of risk: Nottingham, Hiscox Re & ILS

When thinking about the recent firming or even hardening of the Florida reinsurance market at the June renewals, it's important to understand that even the rate increases achieved may not always be sufficient to cover the true cost of risk in the state, according to Ross Nottingham of Hiscox Re read the full article →

United (UPC) losses hit retention, AOB drives adverse development in Q2

For the second-quarter of 2019 Florida headquartered and expanding primary insurer United Insurance Holdings (UPC Insurance) revealed that two severe weather catastrophe events hit its retention, while ongoing assignment of benefits (AOB) impacts drove adverse prior year development. Underlying losses and loss adjustment expenses reached $85.1 million in the quarter for read the full article →

Don’t over-estimate pricing impact of AOB reform in Florida: A.M. Best

Rating agency A.M. Best warned of concerns that insurers may over-estimate the benefits of recently passed legislation to reform the assignment of benefits (AOB) system in Florida in their pricing. While A.M. Best notes that it is "cautiously optimistic" on the impact the legislative reform can have on insurers over time, read the full article →

AOB reform to rationalize Florida cat bond loss development: Cadwalader

The legislative bill designed to reform the assignment of benefits (AOB) system in Florida could benefit the catastrophe bond market, with loss development potentially rationalised thanks to reduced litigation and enhanced claims disclosure, lawyers at Cadwalader, Wickersham & Taft LLP explained. The passage of HB 7065 through the House and now read the full article →

Citizens halves Florida homeowners rate change thanks to AOB reform

Florida's Citizens Property Insurance Corporation has revealed that its homeowners insurance premium rate need has almost halved after taking into account the recent enactment of legislation designed to reform the assignment of benefits (AOB) system. Citizens said in an update on its rate needs for the year ahead that the average read the full article →

Florida assignment of benefits (AOB) reform signed into law

Florida's Governor Ron DeSantis has now signed into law the bill that aims to reform the practice of assignment of benefits (AOB), so increasing the chances that the insurance and reinsurance market can get a firmer grip on the runaway claims inflation seen with recent hurricanes that hit the state. The read the full article →

Citizens increased reinsurance costs reflect firmer Florida market

The risk transfer planning at Florida’s Citizens Property Insurance Corporation is underway after a board meeting that approved a $110 million budget to secure $703 million of fresh reinsurance coverage for 2019. That's quite an increase from the $92 million budget to secure $940 million of fresh reinsurance protection that Florida read the full article →

Citizens: AOB reform could reduce Florida homeowners rate need by 15%

The enactment of a bill designed to reform the assignment of benefits (AOB) system in the state of Florida has the potential to reduce homeowners insurance rate need by an average of 15% and in some cases in the south of the state as much as almost 18%. The passage of read the full article →

Too early to tell how AOB reform will affect reinsurance pricing: Universal CEO

With a bill designed to reform assignment of benefits (AOB) having passed the Florida Senate this week, already discussions are turning to how the market impact will be quantified and whether it will reduce reinsurance pricing. SB 122 (once HB 7065) passed the Florida Senate vote by 25 to 14 this read the full article →