assignment of benefits

As the Florida market continues to grapple with its challenges, even with the promise of some legislative change being on the horizon through the upcoming Special Session, still carriers are pushing hard for steep rate rises in order to restore profitability.

The Florida property insurance market crisis that has unfolded through recent years won’t be fixed by minor reforms to the Florida Hurricane Catastrophe Fund (FHCF), according to Demotech President and Co-Founder Joseph Petrelli.

The number of litigated property insurance claims at Florida’s largest P&C insurers rose again in the month of April 2022, with the total now back at levels only seen prior to the enactment of the SB76 reforms, according to CaseGlide.

Commenting on the potential for legislative reform in the challenged property insurance market of Florida, RenaissanceRe CEO Kevin O’Donnell remarked that a reduction in the FHCF attachment point will change nothing for his reinsurance firm’s view of risk in the state.

Global reinsurance giant Swiss Re looks set to remain underweight on Florida reinsurance business, as unless the market accepts its view of risk, the company is unlikely to expand in the state and lacks optimism on the potential for pricing to rise adequately, its CFO John Dacey explained this morning.

In order for progress to be made in reforming and fixing Florida’s property insurance crisis, analysts at Assured Research have said that the only way to move forwards may be for reinsurance underwriters to pull capacity from the state.

For under-pressure property insurers in the challenged Florida marketplace, achieving a full placement of their Florida-focused catastrophe reinsurance programs at the upcoming June 1 renewal season is set to be challenging, analysts at AM Best have said.

The Governor of Florida Ron DeSantis has now issued an official proclamation calling for a special legislative session, specifically to address issues the state is facing in the property insurance and reinsurance marketplace.

Governor of Florida, Ron DeSantis has revealed his intention to call a special legislative session in May, with one of the primary goals being to debate and enact some property insurance market reforms in an attempt to slow the developing insurance crisis in the state.

March saw a resurgence in the number of litigated property insurance claims at Florida’s largest P&C insurers, while litigated claims related to the assignment of benefits (AOB) increased at their fastest rate since 2019, according to CaseGlide.