Florida Focus---Big "AA" meeting scheduled forTallahassee

Fri, 08 Jun 2007 23:52:25 GMT

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.

Florida Focus---Changes in the Wind?

Fri, 08 Jun 2007 23:52:25 GMT

Some of us reside in Florida. Many more of us have served time here with a stint or two following catastrophes that impacted the Sunshine State. In the aftermath of Andrew; the 'four in 2004', and then Wilma, oldtimers and rookie adjusters alike saturated the fourth largest state and served for weeks and months.

By the end of 2005, state spokesmen proclaimed the industry was in a crisis mode. Citizens, the state created 'insurer of last resort'; (ILR), was out of breath (and money). Poe Financial, a group of carriers that had attempted to help depopulate Citizens, was on the rocks.

Now, Citizens has in excess of 1.2 million policies, and the ILR is still growing.

The newly elected Florida Legislature is having a special January session to deal with insurance matters. Very few of these lawmakers have any background or experience in the field. They will attempt to find 'out of the box' solutions, though few, are familiar with what has been 'in the box'.

Private insurers as well as Citizens are trying to tweak their coverages, such as excluding or placing limits on pool enclosures.

If the 'big one' or even several 'medium ones' hit in the next year or two, the need for cat adjusters will be rampant. Citizens may have 1.5 million policies by then; and many of us, like it or not, may find ourselves in the employ of the ILR or its vendors.

This blog will follow these trends and events. Your participation is welcome.

Horace

Florida Focus---Big "AA" meeting scheduled forTallahassee

Florida Focus---Changes in the Wind?