Florida insurance and reinsurance market news

Florida is considered ground-zero for global property catastrophe risk given its exposure to hurricanes and the significant insured values-at-risk.

As a result, the Florida market is effectively ground-zero for the catastrophe bond and insurance-linked securities (ILS) market, with a significant proportion of ILS market exposure linked to catastrophes that might occur in the state.

Florida’s property insurance marketplace is also known to have faced significant challenges, not just from losses, but with the just as real threat and impact of social inflation and litigation that have driven claims costs higher and ultimately raised insurance pricing. This has had a knock-on effect on reinsurance and ILS pricing for risks in Florida.

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TWIA readies to accept Weston policyholders in Texas

The Texas Windstorm Insurance Association (TWIA) is set for another expansion of its policy count and exposure, as it readies to accept policyholders who's cover is being cancelled due to the insolvency of Florida-headquartered insurer Weston. As the wind and hail residual insurer for the state, the Texas Windstorm Insurance Association read the full article →

Capacity is King, as reinsurance becomes precious: Aon

When reinsurance capacity becomes scarce, or less available, as has been seen in Florida and at the mid-year renewals, capacity becomes "King" and those with availability of it are no doubt very popular. Aon's Reinsurance Solutions described the mid-year renewal dynamics very well in a recent report, saying that capacity is read the full article →

Florida P&C litigation relatively flat, but AOB claims rising: CaseGlide

Newly litigated property insurance claims at Florida’s largest P&C insurers continue to be relatively flat, with the number fluctuating between 4,000 and 4,700 per month so far in 2022, according to the latest data from CaseGlide. In July 2022, CaseGlide counted 4,091 newly litigated claims from Florida's P&C insurer cohort, which read the full article →

HCI to set up new Florida carriers to capitalise on market disruption: CEO

HCI Group, Inc., the Florida headquartered property and casualty insurer and parent of Homeowners Choice Property & Casualty Insurance Company and insurtech TypTap, sees an opportunity to expand into the Florida market on its own terms, CEO Paresh Patel has said. HCI Group has been known more for its expansion outside read the full article →

Weston’s assets insufficient for liabilities, reinsurance not completed

Weston Property & Casualty Company has now had a receiver confirmed for an insolvency process and liquidation of the company, and it's been claimed that the insurers assets were insufficient to meet its liabilities, while it had also failed to place its mid-year reinsurance renewal. The Florida Department of Financial Services read the full article →

Florida market to “remain hard for the foreseeable future” – UPC CEO

Florida's residential property insurance marketplace is expected to remain "hard," as headwinds related to capacity and reinsurance, elevated catastrophe losses and high levels of litigation persist, Dan Peed, the CEO of United Insurance Holdings Corp. (UPC) has said. Speaking during his companies second-quarter earnings call yesterday, Peed said that catastrophe and read the full article →

Florida should reform FHCF cat fund, use it instead of Citizens: Fried

Florida's property insurance crisis continues to get increasingly political, with candidates for the Governor role in the state now blasting each other's proposals for improving the insurance marketplace and its access to reinsurance. Florida Commissioner of Agriculture and Consumer Services, Nikki Fried, who is a Democratic candidate seeking to become Florida's read the full article →

Florida reinsurance market still not well priced: Swiss Re leadership

Global reinsurance giant Swiss Re continues to maintain an underweight stance to the Florida marketplace, feeling that rates remain too low and that state intervention is not helping, when what is needed is price transparency, the firm's leadership recently explained. A quarter ago, Swiss Re CFO John Dacey had explained that read the full article →

Weston’s Marlin Re catastrophe bond issuance never completed

We've learned from sources that Florida focused P&C insurer Weston Insurance never actually completed its debut catastrophe bond deal, the what was supposed to have been $45 million Marlin Re Ltd. (Series 2022-1) cat bond deal. It's a little unusual, as after a prolonged period of marketing and a bit of read the full article →

United (UPC) cites uncertainty post-downgrade, despite Citizens arrangement

United Insurance Holdings Corp. has highlighted how it continues to face significant uncertainty after the downgrade by Demotech of its United Property & Casualty Insurance Company (UPC) carrier, despite having been deemed eligible for support via the Citizens guarantee arrangement. Demotech downgraded United Property & Casualty Insurance Company two notches to read the full article →