Hurricanes and lawsuits to send Florida homeowners insurance rates higher

Florida homeowners insurance rates - home - car - US dollar

Another busy storm season and rising claims litigation explain insurer policy premiums hikes. Florida homeowners insurance rates will be heading upward for policyholders across the central part of the state next year. Insurers point to consecutive active hurricane seasons and a steadily rising claims litigation trend to explain the rising prices. Insurance companies face higher expenses due to the continual record-setting hurricane seasons. The state has suffered damage from several record-setting hurricane seasons. Between those damage claims and the rising lawsuits regarding those claims, insurers are raising Florida homeowners insurance…

Read More

Florida legislation could move consumers from Citizens Property Insurance to more risk surplus lines.

It is no secret that the Florida Citizens Property Insurance group is under financial stress. The state-run insurance company has offered affordable insurance policies to Floridians for decades. This affordability has attracted thousands of consumers, making Citizens the largest insurer in the state, but it has also come at a cost. The insurer now has more policies than it can handle efficiently and is not generating enough revenue to continuing operating viably. State legislators have been working on a way to trim the number of policies covered by the company.…

Read More

Florida pushes ahead with reforms to personal injury protection insurance laws

The Florida Legislature is moving ahead with plans to reform the state’s mandatory personal injury protection (PIP) insurance rules. Florida lawmakers and insurance companies have been battling a rampant outbreak of fraud throughout the state. Insurers claim that the fraud stems from the state’s regulations which require all drivers to have PIP coverage. The coverage is comprised of no-fault policies, which require insurers to pay claims whether a policyholder is at fault in an accident or not. This week, the Civil Justice Subcommittee approved HB 119, the bill that will…

Read More

Florida to join the Interstate insurance Product Compact

Florida may be the latest state to join the Interstate Insurance Product Compact, a program established in 2006 in order to improve consumer protection and hasten the accreditation process for new insurance products. Currently, 41 states have joined the program, all of which have adopted universal standards regarding application procedures concerning life insurance and long-term disability coverage products. The program does not account for health insurance, but Florida legislators may seek to include these products into the program if the state joins. The Insurance Product Regulation Commission, a multi-state agency…

Read More

Insurance group proposes new legislations as alternatives to Florida’s no-fault auto insurance regulations

The Property Casualty Insurers Association of America (PCI) has released a new report concerning the state of Florida’s personal injury protection (PIP) regulations. Florida lawmakers recently passed a new set of rules that govern the PIP insurance system, which established no-fault auto insurance laws in the state. The insurance group claims that the law also institutes a so called “fraud tax” which may drive up insurance prices in the state and put consumers at risk of being victimized by dubious business practices. PCI has proposed a number of legislations that…

Read More

Lloyd’s enters Florida’s reinsurance market on the heels of new law

Lloyd’s of London, one of the world’s leading insurance and reinsurance specialists, is entering Florida’s reinsurance market. The company joins several other reinsurance organizations flocking to the state to take advantage of a new law that reduces capital requirements for reinsurers. The law, first introduced in 2009 but only recently passed, is an attempt to attract more foreign reinsurance companies to do business in the state, thereby reinvigorating the somewhat stagnant market. Because of the law, Lloyd’s has been approved to do business in the state. According to the law,…

Read More

Citizens Property Insurance rate increase struck down by Florida’s Insurance Commissioner

Florida’s Insurance Commissioner has taken a bold stand against the state-run insurance company Citizens Property Insurance Corp. The insurer has been facing staunch opposition lately for a rate increase that will raise the rates of sinkhole coverage throughout the state by an average of 400%. Commissioner Kevin McCarty has ruled against the rate increase and now demands that the insurer make dramatic changes to their rate proposal. McCarty is keen to see the insurer propose new rates that are friendlier toward consumers. The insurer’s rate increase has been under investigation…

Read More