TALLAHASSEE (CBSMiami/NSF) — Florida regulators have scheduled three hearings subsequent week on proposals by property insurers to lift owners’ charges greater than 20 p.c, whereas the state weighs a plan by one other insurer that has shed insurance policies amid monetary losses.
The Florida Office of Insurance Regulation will maintain hearings May 17 on proposed price hikes by First Floridian Auto and Home Insurance Co., Kin Interinsurance Network and Florida Farm Bureau General Insurance Co. and Florida Farm Bureau Casualty Insurance Co.
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Notices printed Tuesday within the Florida Administrative Register mentioned First Floridian is looking for approval of an general 22.9 p.c enhance for owners “multi-peril” insurance policies; Kin Interinsurance is looking for approval of an general 25.1 p.c enhance; and the Farm Bureau corporations are looking for approval of an general 48.7 p.c enhance. The Farm Bureau corporations are additionally looking for approval of an general 31.7 p.c enhance for what are often called “dwelling fire” insurance policies, based on one of many notices.
The hearings will come lower than every week earlier than the May 23 begin of a particular legislative session that Gov. Ron DeSantis known as to grapple with widespread issues within the insurance coverage market. Key points throughout the session might embrace attempting to assist corporations receive reinsurance, which is backup protection that’s essential for Florida carriers.
Three Florida property insurers — Lighthouse Property Insurance Corp., Avatar Property & Casualty Insurance Co. and St. Johns Insurance Co. — have been declared bancrupt since February.
Meanwhile, insurance policies have poured into the state-backed Citizens Property Insurance Corp., which was created as an insurer of final resort. Citizens topped 850,000 insurance policies final week and is anticipated to hit 1 million insurance policies by the tip of the 12 months, officers have mentioned.
Insurance regulators are also weighing a plan that may have an effect on the way forward for FedNat Holding Co., which incorporates subsidiaries FedNat Insurance Co. and Monarch National Insurance Co., and had about 152,000 insurance policies in Florida as of March 31.
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The holding firm mentioned in a federal Securities and Exchange Commission submitting Monday that it submitted the plan to regulators after the score company Demotech downgraded FedNat Insurance final month. As a part of its technique, FedNat is leaving different states and specializing in Florida, the place its March coverage rely was down 23 p.c from a 12 months earlier and the place it has had massive price will increase lately.
“FedNat has submitted a proposed action plan to the OIR (Office of Insurance Regulation), which, if approved by them and regulators in other impacted states, would be expected to result in the company becoming much smaller, with significantly fewer policies in force, and potentially result in additional capital coming into the holding company or into our insurance carriers,” Michael Braun, FedNat’s chief government officer, mentioned within the submitting. “If approved, the proposed action plan would be expected to enable the company to obtain excess-of-loss reinsurance on a smaller, Florida-only book of business. Our action plan is currently being reviewed by the OIR and we will provide an update on the outcome of their review when available.”
During a name Tuesday with analysts in regards to the firm’s first-quarter monetary outcomes, Braun mentioned it’s too early to know what adjustments within the property-insurance system might consequence from the particular session.
“Clearly the Florida property market has been very challenging for the last number of years,” Braun mentioned.
He mentioned the issues available in the market are having wide-ranging results.
“It’s very difficult on the policyholders, it’s very difficult on the agents, it’s very disruptive. People are having a lot of trouble finding coverage. Citizens (Property Insurance) is growing exponentially,” Braun mentioned.
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