Florida Citizens news

Lexington Insurance Company, the U.S. based surplus lines insurer arm of global player AIG, has reportedly announced a pull-back from Florida’s high-value homeowners insurance market, with plans to stop offering personal lines property coverage from August.

A decline in surplus, reserve adequacy trending lower, underwriting losses driven by storms and hurricanes, and a generally unsettled Florida P&C insurance market environment, all of which have contributed to a downgrade for Florida Farm Bureau, according to AM Best.

With the focus in Florida’s property insurance market shifting towards an impending reinsurance renewal that is anticipated to be particularly challenging, rating agency Demotech has called for urgent legislative reforms and warned that a number of carriers are facing downgrades in the coming weeks.

Insurance, reinsurance and insurance-linked securities (ILS) markets hoping that some of Florida’s legislative actions targeted at reforming the challenged property insurance market might pass this year, look set to be disappointed again.

Florida’s insurance carrier challenges persist with another company headed into insolvency and analysts saying that almost half of the smaller Florida-dedicated homeowners carriers they have tracked have failed to make a go of it.

United Insurance Holdings (UPC Insurance), the Florida headquartered and still focused insurer, has revealed a further $150 million of loss creep related to 2017’s hurricane Irma, which the company booked at the end of Q1 2021.

Florida headquartered insurer United Insurance Holdings (UPC Insurance) has said that it anticipates the Florida personal lines property insurance market remaining “very firm for the foreseeable future”.

The litigation issue and resulting loss inflation and amplification continues for Florida homeowners’ insurers, with the latest report from United Insurance Holdings (UPC Insurance) suggesting that the issue is worsening in 2021.

Florida’s Citizens Property Insurance Corporation is targeting a $2.6 billion reinsurance and risk transfer program in advance of the 2021 hurricane season beginning and within the renewed towers could be $850 million of new catastrophe bonds.

Florida’s Citizens Property Insurance Corporation has increased its policy count by 28% in just the last 18 months and the insurer expects its growth to continue at an unsustainable rate, which now makes it “the insurer of first resort,” according to its Chairman.