Plus, new rule on claims adjusting
An updated report of good news about Florida’s property insurance market from its insurance commissioner, a new rule to improve transparency in the claims adjusting process, and a new poll shows how important insurance costs are to Florida voters. It’s all in this week’s Property Insurance News.
Market Health: Florida Insurance Commissioner Michael Yaworsky last Thursday issued an update on the continued stabilization of the state’s property insurance market. He announced that USAA Insurance has joined State Farm and Progressive in committing to growing its policy count in the Sunshine State. They are among a growing group of carriers expressing confidence that the 2022 insurance consumer protections and the 2023 reforms, together with the elimination of one-way attorney fees is bringing about a healthier, stable market. It’s also leading to lower homeowners insurance rates. Yaworsky reports that as of October 9, 15 companies have made a total of 22 filings for a rate decrease impacting 1.5 million residential policies to take effect in 2024 and 29 companies have made 42 filings for a 0% increase for 1.9 million residential policies. The current 180-day average request for homeowners’ rates 2024 is 0.9%. One year ago, the 180-day average rate request was 8.08%. Nine new carriers have joined the Florida market this year and 18 carriers have been approved for Citizens’ depopulation policy takeouts through next month.
Claims Adjusting: Florida CFO Jimmy Patronis last week issued an Emergency Rule to enhance transparency in the claims adjusting process for insurance consumers by requiring adjusters to identify and provide detailed explanations for any changes made to damage estimates. The rule allows the Florida Department of Financial Services to hold insurance adjusters who provide contracted services to insurance companies to the same accountability standards that apply to an insurance company’s in-house adjusters by virtue of SB 7052 from the 2023 legislative session. It follows an Emergency Order lifting restrictions on Insurance Customer Representatives’ ability to conduct business outside the office and continuing education requirements, prompted by Hurricanes Milton and Helene.
Voters’ Attitude on Insurance: The Associated Industries of Florida (AIF) Center for Political Strategy released a poll on October 2 of various attitudes among Florida voters that it commissioned. Insurance is a major issue for Florida voters. The poll found insurance costs and inflation were tied at 23% for the most important issues facing Floridians. That was far ahead of other high-profile issues of housing costs (12%) and illegal immigration (10%). The poll was conducted from September 23-25 as Hurricane Helene was forming, but before it made landfall. AIF reports a plurality of voters (34%) believes neither party is doing an effective job lowering property insurance costs.
LMA Newsletter of 10-14-24
