Florida Focus---Big "AA" meeting scheduled forTallahassee
Well, "AA" can stand for different things or for the lack of different things.. Florida's insurance crisis revolves around the lack of Availability and Affordability in the insurance market. Availability and Affordability---that's also "AA".
On January 16th, lawmakers, lobbyists, lawyers, agents, consumers and media will inundate Tallahassee, presenting and studying proposals and concepts to rectify the situation. As for now, the situation seems to be worsening. For instance, in the last month Citizens has announced their plans to jack up premiums 25% on vacation homes, second homes or otherwise non-homesteaded properties. In Florida with its 1,300-plus miles of built up coastline, that's a bunch of policies and premiums.
Its not just policyholders searching for "AA". Insurance carriers, too, can't find affordable reinsurance and are demanding rate increases in order to purchase what is available.
What does all this mean for claims people? Will carriers tend to go with more "in house" adjustments? Will fee schedules be squeezed?
What do you think?
We will keep our ears open.