Plus, a new adjuster rule, new insurer, growing cost reports
Florida’s Insurance Commissioner refutes allegations of unjustified hurricane claims denials and approves another new property insurance company, a new rule toughens ethics requirements on residential insurance adjusters, surprising growth in Florida’s dwelling policies, plus the dramatic growth in U.S. property claims volume and roof repair and replacement costs. It’s all in this week’s Property Insurance News.
Florida Insurance Commissioner Michael Yaworsky, Courtesy, OIR
Defending Florida’s Market: Insurance Commissioner Michael Yaworsky isn’t sitting idle when it comes to the latest misleading information on the state’s property insurance market. His Office of Insurance Regulation (OIR) issued a news release last week, stating in part, “Weiss Financial Ratings recently reported questionable data suggesting that 14 insurance companies refused to pay out over half of home insurance claims submitted to them. However, news reports state that Weiss could not provide proof of his claims. OIR, once again, objects to this narrative intending to alarm policyholders driven by Weiss.” The Weiss release follows its similar misleading effort last fall that was discredited afterward, including on The Truth Behind the 50% Claims Denial episode of my Florida Insurance Roundup podcast. Yaworsky touted OIR’s enhanced reporting website, noting “Generally, the top reasons for claims closed without payment are the claim damage was below the insurance policy’s deductible, or the claim was denied due to flood coverage that is not covered by the insurance policy.”
New Insurance Company: Commissioner Yaworsky also announced another new property & casualty insurance carrier is now open for business in Florida. Apex Star Reciprocal Exchange is now the 12th insurer entering the market since the 2022-2023 legislative reforms. The company is based out of New Port Richey and will provide fire, allied lines, homeowners multi-peril, commercial multi-peril, inland marine and other liability coverage in the state. “The continued growth in Florida’s insurance market is due in large part to the historic legislative reforms we have enacted,” Yaworsky is quoted in the release as saying. “We must continue on this path and not turn the clock backwards.”
New Adjusting Rule: OIR has adopted Rule 69B-220.201 “Ethical Requirements for All Adjuster and Public Adjuster Apprentices.” It requires adjusters to provide detailed descriptions of any changes they make to damage estimates, maintain records of changes, and use an electronic estimating program to create or modify a detailed estimate of the amount of the loss. It follows an Emergency Rule issued by CFO Jimmy Patronis last October, just after Hurricane Milton’s landfall, designed to enhance transparency and accountability. The rule takes effect on April 21, 2025.
Dwelling Policies Growth: Ron Hurtibise of the South Florida Sun Sentinel reports that sales of Dwelling Fire insurance (DP) policies in Florida are growing faster than traditional Multi-Peril Homeowners insurance (HO) policies. Since June 2022 the number of DP policies increased by 81,684 vs. the 47,768 HO policies added in the period. Overall though, HO policies outnumber DP policies more than 4-to-1. While DP policies cost $2,649 on average, compared to $3,644 for a traditional all-perils policy, the article quotes several agents who warn the initial cost savings may not be worth it should a loss occur, as DP policies are limited in coverage. Once again Ron Hurtibise is on top of industry trends and we want to give him a shout-out for his thorough coverage and say thank you to agents who take the time to educate their customers.
Verisk Reports: Verisk, the global data analytics and insurance technology provider, is out with two reports providing insight on the ever-riskier world we’re living in. Its latest Quarterly Property Report shows U.S. property claims volume rose 36% in 2024, pushed by a 113% increase in catastrophe claims. In a “dramatic shift” from previous loss patterns, late-season hurricane activity – rather than winter storms – dictated fourth-quarter claims operations last year. Verisk has also released its U.S. Roofing Realities Trend Report, which identifies trends and ongoing challenges in roof conditions. The report notes that peril severity and outdated practices are driving up costs. In 2024, roof repair and replacement cost value totaled nearly $31 billion, up almost 30% since 2022. You can read more in the Claims Journal, whose article includes an in-depth interview with Ryan D’Amario, Verisk’s vice president of property product management.
The Verisk Insurance Conference panel on construction materials, April 10, 2025. Courtesy, Verisk
Verisk Conference: Last week, I spoke to a large group of underwriters and insurance leaders from across the country exploring ways to change the way America builds: Why it’s fundamental, why we as a nation struggle without it, and how to build structures that outperform Mother Nature and stand up to the ever-increasing severe weather. Some key thoughts:
- Resilience isn’t just a word…it’s a must and has to be top of mind before a hammer swings.
- Construction professionals must work with the insurance industry and if not, it’s policyholders who suffer.
- Practical, daily actions matter in bringing to the table innovative and resilient building materials.
Real talk: What’s one thing you’ll do this week to strengthen the resilience message with policyholders, insurance agents, elected officials, homebuilders and others? The panel was a lively one with experts who live resilience every day. Please connect with me so I can share more!
LMA Newsletter of 4-14-25
