April 11, 2024
First-Quarter Invoices Available
First-quarter 2024 invoices are available in your SLIP Inbox. Payments are due by Wednesday, May 15.
Pay invoices in SLIP:
- Invoicing tab
- Pay Invoices
If you have any questions about invoices, please contact accounting@fslso.com or call 800-562-4496, option 4.
Agents who transacted and reported business under their SLIP account during the first quarter are also required to file the quarterly affidavit. Affidavits are due by Wednesday, May 15.
File the quarterly affidavit in SLIP:
- Reports tab
- File Quarterly Affidavit
If you have questions about the quarterly affidavit, please contact agent.services@fslso.com or call 800-562-4496, option 1.
ICYMI: Surplus Lines Stats Report
Last week, we published the latest statistics report covering various statistics on surplus lines premium, policy count, and lines of business.
There was a net increase in premium of 16.12% over the first quarter of last year. Policy count also rose 8.61%.
Notably, policy counts for Commercial Property outpaced premium rate growth for the first time in recent reporting periods. This trend indicates a decrease in the average cost per policy for the top coverage in Florida.
Conifer Holdings: Downgrades and Updates
AM Best recently downgraded Conifer Insurance Co. and White Pine Insurance Co., subsidiaries of Conifer Holdings, Inc., from "Good" to "Weak" ratings. Concurrently, Conifer Holdings, Inc. (CHI) saw its Long-Term Issuer Credit Ratings (Long-Term ICR) downgraded from "Fair" to "Poor."
The downgrade reflects AM Best's assessment of Conifer's balance sheet strength as very weak, along with marginal operating performance and weak enterprise risk management. This assessment follows a significant reserve charge in late 2023, impacting reported surplus and capitalization.
AM Best has withdrawn all of these ratings as the company has requested to no longer participate in AM Best’s interactive rating process.
During Conifer’s fourth-quarter earnings call on April 5, they discussed its transition from a risk retention model to a production-based revenue model for commercial lines, facilitated by Conifer Insurance Services (CIS). This strategic shift aims to enhance long-term success and sustainability. Additionally, partnerships with Palomar and Accelerant were announced to provide A-rated paper for commercial lines insurance. The call concluded with a financial overview by CFO Harold Meloche, highlighting a net loss of $19.5 million for the fourth quarter and detailing the company's investment and balance sheet status.
Orlando Customer Forum Fun
On March 28, the Florida Surplus Lines Service Office (FSLSO) hosted a seminar attended by more than two dozen industry professionals. Key FSLSO staff, including Mark Shealy, Bryan Young, Ashlee Weber, and Felicia Meredith, discussed legislative updates impacting the surplus lines market, compliance review programs, carrier updates, and more.
Highlights included insights into the 2024 Legislative Session and a two-hour Continuing Education session on Commercial Property Coverage led by Kevin Amrhein of the Florida Insurance School Continuing Education.
The seminar provided an opportunity for attendees to further their understanding of regulatory changes and commercial property insurance, reaffirming FSLSO's commitment to supporting professional growth within the insurance sector.
Dates to Remember
April 11: NCOIL Spring Meeting (Nashville, TN)
April 18: Surplus Lines Law Group Meeting (Washington, DC)
May 15: Invoice payments and affidavit filings due
May 31: Catastrophe Contact Information due
Goodbye Chloe Rebelo
We were incredibly fortunate to have Chloe Rebelo as one of our spring interns. She is a quick study and always up for a challenge. During her time with FSLSO, she earned multiple insurance licenses and accreditations.
Next, she is off to Italy for the summer, where she will serve as Program Assistant (PA) at Florida State University’s Florence campus. Good luck and safe travels, Chloe!
Industry Headlines
Florida’s property insurer of last resort, Citizens Property Insurance Corporation, has said that it sees market conditions as especially positive in the capital markets as it looks to progress its $5.5 billion reinsurance renewal for 2024.
The Florida Hurricane Catastrophe Fund Advisory Council has approved a new premium reimbursement formula that will help alleviate the burden on insurance companies operating in Florida.
According to publicly released data by the Florida Office of Insurance Regulation, the statewide average premium to insure a single-family house increased by 23.9% — from $2,798 at the end of June 2022 to $3,466 at the end of December 2023.
The Florida Office of Insurance Regulation is reminding carriers that additional data is due April 17 on Hurricane Ian claims.
Castle Key (parent company Allstate) is notifying homeowners of the "non-renewal" of an undetermined number of their Florida policies.
www.fslso.com
Have questions? Contact us at 800.562.4496, option 1 or email Agent.Services@fslso.com.
