Connect with us

Florida

'Cautiously Optimistic' on Florida: Defense Costs Down, but Reinsurance Still a Drag

Published

on

'Cautiously Optimistic' on Florida: Defense Costs Down, but Reinsurance Still a Drag


Analysts with the AM Best financial rating firm and other stakeholders are cautiously optimistic about the resurrection of the Florida property insurance market, 18 months after state lawmakers approved monumental litigation reforms.

That was the sentiment gleaned from a Thursday webinar hosted by the rating company and from an AM Best report on the Florida market, released the same day.

“It’s still a little too early to declare a win in the marketplace, but signals do look promising,” AM Best analyst Josie Novak said.

Notably, since the legislation was enacted in late 2022, direct defense and cost containment expense – considered a key measure of the claims litigation burden on carriers – has dropped sharply. In 2022, Florida carriers reported the highest DCC-to-direct-premiums-earned-ratio of all U.S. states, at 8.4%, for homeowners, allied and fire lines. The next-closest state was Louisiana, at 3.6%, AM Best reported.

Advertisement

By the end of 2023, that measure had been cut in half, falling to about $307 million for the 47 insurers that write most of the Florida market, including the state-backed Citizens Property Insurance Corp., but excluding some major national carriers.

“While still early, a downward trend has been observed, indicating the reform has positively impacted results,” the report noted.

While 2023 was a year that saw only one relatively minor hurricane hit Florida, claims and defense costs would have been two to three times higher under under Florida’s pre-reform statutory regime, which had allowed assignments of benefits and one-way attorney fees, said Randy Fuller, the Florida leader for Guy Carpenter, the global reinsurance firm.

Another sign of health in the patient: The combined ratio for Florida-focused carriers, excluding Citizens, dropped to the break-even mark in 2023, outpacing AM Best’s national property insurance composite measure. Citizens’ combined ratio fell to less than 81%.

“These are results that have not been seen since the earlier part of the latest decade,” the report noted.

Advertisement

The expense ratio for the Florida specialists fell to about 26%, down from a high of 35% in 2019. Loss-reserve development for Florida insurance carriers also is showing promise, with favorable numbers for the first time in years, AM Best said.

Florida carriers also added significantly to policyholder surplus last year – without major cash infusions. From 2019 to 2023, the Florida-focused insurers, including those that became insolvent, received $2.6 billion in capital contributions, but surplus grew by just $239 million, the analysis showed.

But in 2023, surplus had jumped by $532 million and that was was not dependent on capital contributions.

The news about the reinsurance market was a little more of a mixed bag. After three years of turmoil, spiking reinsurance rates, limits on coverage and higher retention levels, the 2024 renewals for most Florida carriers seem to be “incredibly stable,” Fuller said.

The legislative changes have created some optimism among most reinsurers, analysts said.

Advertisement

But reinsurance costs are still weighing heavily on insurers, and Florida carriers have a much higher dependency on reinsurance than insurers in other parts of the country – almost 10 times the national average, the AM Best report noted. From 2019 to 2023, unaffiliated ceded premium for the Florida insurers more than doubled, from $3.1 billion to $6.4 billion.

Although many carriers have sharply raised rates for policyholders in recent years, the growth in direct premium written has not kept pace with the growth in ceded premium, the report found.

“The materially higher position indicates greater direct risk borne by Florida specialists, necessitating more effective risk transfer, underwriting, pricing, and risk exposure management,” the report said.

Still, other signs point to improved market conditions, including modest rate decrease requests from several insurers and the approval of eight new carriers for Florida this year. Most of those new companies are reciprocal exchanges, a model that some insurance agents until recently had been unfamiliar with, said Dave Newell, vice president of membership and industry relations for the Florida Association of Insurance Agents.

But once the model was explained to agents, “they have become more comfortable with it,” Newell said in the virtual conference.

Advertisement

The full report can be seen here.

Topics
Florida
Trends
Reinsurance



Source link

Advertisement
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Florida

Man punches trooper during I-95 traffic stop in Brevard County, Florida Highway Patrol says

Published

on

Man punches trooper during I-95 traffic stop in Brevard County, Florida Highway Patrol says


BREVARD COUNTY, Fla. – A Florida Highway Patrol trooper was punched in the face after pulling over a van on Interstate 95 in Brevard County near the Indian River County line, according to FHP.

Traffic cameras showed a large law enforcement presence along I-95 near the 166-mile marker on Monday morning.

According to an FHP report, a trooper was conducting traffic enforcement in the southbound lane when he spotted a white 2007 Ford Transit van weaving in the center lane and nearly clipping a semi-tractor-trailer. When the trooper pulled the van over, all seven occupants bailed out of the passenger side and fled west into the nearby woods on foot.

The trooper made contact with one of the men — later identified as Luis Angel Gomez Lopez, 18, of Orlando — who also tried to run toward the woods, the report states.

Advertisement

After Gomez Lopez ignored repeated verbal commands to stop, the trooper deployed his department-issued Taser, striking Gomez Lopez in the back. Gomez Lopez kept resisting, and the trooper deployed a second Taser cycle. During the struggle, both Gomez Lopez and the trooper tumbled down an embankment, the report states.

While the trooper was trying to handcuff Gomez Lopez, Gomez Lopez struck the trooper with a closed fist on the right side of his face, the report states. The trooper was then able to gain control and place Gomez Lopez in handcuffs. A Brevard County deputy helped secure Gomez Lopez in the patrol unit.

Multiple agencies responded to help search for the six men who got away, including the Brevard County Sheriff’s Office, the Florida Fish and Wildlife Conservation Commission K-9 unit, the BCSO Aviation Unit “STAR,” and the Indian River County Sheriff’s Office drone unit. All six suspects were not located, according to the report.

Gomez Lopez was evaluated on scene by Brevard County Fire Rescue, then transported to the hospital for medical clearance before being booked into Brevard County Jail.

He faces a felony charge of battery on a law enforcement officer and a misdemeanor charge of resisting an officer without violence, the report shows.

Advertisement

Anyone with information on the six suspects on the run is urged to call the Florida Highway Patrol.

Copyright 2026 by WKMG ClickOrlando – All rights reserved.



Source link

Advertisement
Continue Reading

Florida

South Florida officers sue Ben Affleck and Matt Damon, claiming details in ‘The Rip’ are too real

Published

on

South Florida officers sue Ben Affleck and Matt Damon, claiming details in ‘The Rip’ are too real


Entertainment

“The Rip” features Affleck and Damon as South Florida police officers who find millions of dollars inside a house. Parts of the movie were inspired by a real 2016 case.

FILE – Matt Damon and Ben Affleck attend the world premiere of “The Rip” at Alice Tully Hall, on Jan. 13, 2026, in New York. Photo by CJ Rivera/Invision/AP, File

MIAMI (AP) — Two South Florida police officers claim Ben Affleck and Matt Damon’s recent action thriller “The Rip” used too many real-life details in its fictionalized narrative, causing harm to the officers’ personal and professional reputations, according to a defamation lawsuit.

Jason Smith and Jonathan Santana, sergeants in the Miami-Dade Sheriff’s Office, filed the lawsuit in Miami federal court earlier this month against Artists Equity, a film production company owned by Affleck and Damon. Court filings don’t say how much the officers are suing for, but the civil complaint says they’re seeking compensatory damages, punitive damages and attorney fees, as well as a public retraction and correction.

Advertisement

“The Rip” features Affleck and Damon as South Florida police officers who find millions of dollars inside a house. Parts of the movie were inspired by a real 2016 case, where police found over $21 million linked to a suspected marijuana trafficker in a Miami Lakes home.

An attorney for Artists Equity declined to comment when reached Monday by The Associated Press. But in a March 19 response to the plaintiffs’ demand letter, Leita Walker, an attorney for Artists Equity, wrote that the film does not purport to tell the true story of that incident or portray real people, which had been stated by a disclaimer in the film’s credits.

Although Smith and Santana aren’t named in the film, the lawsuit claims that Santana was serving as the lead detective assigned to the real case, and Smith was the sergeant who supervised the investigative team. The film’s inclusion of real details about the case gives the impression that the characters are based on the plaintiffs, the suit said.

And this, the lawsuit claims, has given friends, family members and colleagues the impression that the plaintiffs committed the criminal acts that appear in the film, which include (SPOILER ALERT) conspiring to steal seized drug money, murdering a supervising officer, communicating with cartel members, committing arson in a residential neighborhood, endangering the lives of civilians, repeatedly violating core law-enforcement protocols and executing a federal agent rather than making an arrest.

Walker wrote in March that the plaintiffs haven’t even identified which particular character is supposed to be based on Smith or Santana, so even if “The Rip” was actually about a real-life narcotics team, there’s no way to connect any of the characters to the plaintiffs.

Advertisement

“The Rip,” directed by Joe Carnahan, debuted in January on Netflix. It’s currently rated 78% Fresh on Rotten Tomatoes.

Sign up for The Queue

Discover the best movies and TV shows streaming now, with handpicked recommendations from Boston.com.





Source link

Advertisement
Continue Reading

Florida

South Florida and Miami news today

Published

on

South Florida and Miami news today


You’re watching the NBC6 South Florida News streaming channel, which plays local South Florida news 24 hours a day, seven days a week. You can find the “NBC6 South Florida News” streaming channel on your phone or computer, and on Peacock, Samsung, Roku, Xumo or on our app, so you can watch our local news on your schedule.



Source link

Continue Reading
Advertisement

Trending