June 13, 2019
Happening This Week
Legislative Update
House Bill 301 was presented to Governor DeSantis last week but has not been signed yet. This measure implements the following as it relates to surplus lines.
- Residential structure dwelling replacement cost was reduced to $700,000 (from $1 million) as it relates to Diligent Effort procedures.
- There will no longer be a $35 cap on the policy fee. The filing surplus lines agent may charge a reasonable policy fee that must be itemized separately to the customer before purchase and enumerated in the policy.
- A retail agent may also charge a reasonable per-policy fee for placement of a surplus lines policy. This fee must be itemized separately to the customer before purchase.
If this bill is not vetoed, it will go into effect on July 1, 2019.
Top 5 Insurer Shake Up
The top 5 Insurers have shown major changes during the first five months of 2019.
Scottsdale has been ranked third by premium among non-admitted insurers since 2014. However, so far in 2019, Scottsdale is no longer in the top 5.
Indian Harbor took over the third place largely due to their continued HO-5 growth, which is now their top coverage. United Specialty jumped to fourth place with a respectable amount of Commercial Property and Commercial General Liability premium. National Fire and Marine remains in the fifth spot but had some shifts in its top coverages, including HO-6, which had no premium for the same period last year.
Lloyd’s continues in the top spot and increased their YTD premium amount for all of their top coverages compared to the same time last year. Lexington had a large decrease in their Commercial Property premium but still remains the second top insurer by premium.
Last Chance for the FSLSO Annual Customer Survey
Thank you to everyone who has provide us with feedback through our annual customer survey! We are closing the survey this Friday, so if you have not had the opportunity to respond there is still time!
Headlines
To Compete in a Data-Driven World, Insurers Turn to Digital Policy Admin
A panel of insurers and technologists examine how insurers are broadening the focus of their policy administration systems to make it easier to input and capture data, and speed information flow throughout the organization.
Michael Insured Losses Hit $6.6 Billion
With more than 15 percent of claims remaining open, estimated insured losses from last year’s Hurricane Michael have topped $6.6 billion, according to new data from the state Office of Insurance Regulation.
As of Friday, 147,325 claims had been filed from the Oct. 10 hurricane, with estimated insured losses of $6.61 billion. The overwhelming majority of claims, 97,484, were filed because of damage to residential property. Overall, 23,194 claims remained open, or about 15.7 percent.
CFO Jimmy Patronis: 15 Storms Predicted, Prepare Now During Hurricane Prep Sales Tax Holiday
During the first five days of the 2019 Hurricane Season, Chief Financial Officer (CFO) Jimmy Patronis wants Floridians to take advantage of the final two days of the 2019 Disaster Preparedness Sales Tax Holiday. CFO Patronis continues to remind Florida families to take steps now to review important financial preparedness tips so that everyone can be financially prepared for an active hurricane season.
CFO Jimmy Patronis said, “As Floridians, we know hurricanes can devastate families, homes, and entire communities. This hurricane season, experts are predicting as many as 15 named storms and four major hurricanes. There is no room for complacency. As we saw last year with Hurricane Michael, you may only have a few days to react once the storm takes aim at Florida.
Florida Insurance Industry Balances Optimism for AOB Reform Against Experience
Insurers expect a positive impact from long-sought changes to Florida law meant to slow property claims abuses, but they also know attorneys and contractors may find other loopholes to exploit.
The response from opportunists to the coming changes in assignment of benefits, or AOB, outran the pace of the reform bill as it wound through the state legislature, according to industry representatives. Claims spiked in advance of the July 1 effective date, with one law firm posting an online instructional video on how to file quickly, said Logan McFaddin, a regional manager at the American Property Casualty Insurance Association who lobbied for AOB reform.
"We saw a rush of trial lawyer attorneys advertising to clients ... 'Run, don't walk, to use your AOB claims,'" he said in an interview.
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