risk transfer

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.

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 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%.

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.

Meaningful reform could be on the way for the Florida insurance market, as a bill designed to reform the age-old practice of assignment of benefits (AOB) passed the Senate vote yesterday.

In the state of Florida the incidence of so-called assignment of benefits (AOB) lawsuits connected with property insurance claims have risen by more than 70% over the last five years and as this continues primary insurance rates are rising with them.

Florida’s Citizens Property Insurance Corporation has revealed that it expects to claim back $126.4 million from the private reinsurance market to help it pay for claims from hurricane Irma.

A new initiative to develop a parametric insurance product to protect and enhance the resilience of coral reefs and the communities that rely on them is being developed by Willis Towers Watson through its Global Ecosystem Resilience Facility (GERF) and the Mesoamerican Reef Fund (MAR Fund).

Florida’s Citizens Property Insurance Corporation said that a recent surge in claims related to non-weather water losses in South Florida has increased its costs enough to offset the lower cost of reinsurance and other risk transfer, resulting in the need for a proposed statewide average rate increase of 7.9%.

The City of Miami Beach in Florida is looking into parametric triggers for insurance solutions to protect its revenue from taxes paid by the tourism industry, in recognition that weather, hurricanes and other crises such as the Zika virus outbreak have all had a significant impact on the City’s ability to make money.