Welcome to

Capitol News Service

Florida's Best Political Coverage on Television




Recent Posts

RSS Quote of the Day

  • Dorothy L. Sayers
    "The great advantage about telling the truth is that nobody ever believes it."
  • Josh Billings
    "Laughter is the sensation of feeling good all over and showing it principally in one place."
  • Salvador Dali
    "The thermometer of success is merely the jealousy of the malcontents."
  • O. Henry
    "There is one day that is ours. Thanksgiving Day is the one day that is purely American."

Florida Property Insurance Industry Still in a State of Crisis

October 13th, 2021 by Jake Stofan

The Florida property insurance market is still in a state of crisis, suffering a nearly $1 billion loss in 2020 alone.

The losses have led to consumers flocking to the state’s insurer of last resort at a rate the company describes as unsustainable.

Roughly 5,600 Floridians are leaving their private insurer each week for Citizens, the insurer of last resort.

“Now we’re finding that it seems to be the market of only resort,” said Representative Michele Rayner.

The company told lawmakers private insurers are having to ditch policies because heavy litigation continues turn their profit margin red.

Citizens President & CEO Barry Gilway said a litigated claim costs $48,000, versus $10,000 for claims that don’t end up in court.

“At the end of this year we will have over 100,000 litigated cases,” said Gilway.

There were 105 rate increase filings in excess of 10 percent in 2020 alone.

If the litigation isn’t dealt with, Gilway expects to see more policies dropped and rates rise even higher.

Citizens did say there have been some indications laws passed in recent legislative sessions have put a dent in the number of litigated claims.

But lawmakers questioned why, even after the reforms, litigation continues to be the biggest issue facing property insurers.

“We continuously find the same results and find ourselves in these sticky situations,” said Representative Evan Jenne.

Gilway said one of the big issues, is what he described as ‘manufactured claims’.

“Phony claims. You know, when you buy an insurance policy, you’re not buying a homeowner’s warranty,” said Gilway.

Another issue raised by Citizens is its inability under state law to raise rates fast enough to keep a competitive market place.

Citizens rates are cheaper than the private market 91 percent of the time.

Citizens projects its rates could rise five percent in 2022, while the private market is expected to raise rates by five to ten percent next year.

Posted in State News | No Comments »

Comments are closed.

copyright © 2016 by Capitol News Service | Powered by Wordpress | Hosted by LyonsHost.com