Florida Property Insurers – Financial Stability Ratings® Update
Columbus, Ohio, February 9, 2018 – Hurricane Irma and severe weather were the natural catastrophes that hammered the Sunshine State during 2017. The Judiciary created a procedural onslaught by issuing decisions that revised established claims procedures, processes, and protocols that had been in place in Florida and countrywide for decades. Landers v. State Farm Florida Ins. Co. was the first such decision of 2018. Although insurers can purchase catastrophe reinsurance to protect them from natural disasters, when dislocations of existing claims procedures, processes, and protocols occur, internal administrative revisions must be implemented. Similarly, regulatory and/or legislative responses should be thoughtfully considered to restore the previous status quo or facilitate the orderly revision of the new standards established by the Judiciary. Concurrently, rate revisions of sufficient magnitude to fund the differential in claim costs created by the judicial changes should be implemented, when actuarially justified.
For the remainder of this update, click here.