As expected, the state’s troubled property insurance market dominated the just-concluded session of the Florida Legislature, according to the American Insurance Association in Atlanta. The session concluded Friday night just after legislators approved a hotly debated, comprehensive property insurance measure.
“Last year’s record-breaking hurricane season was top of mind for legislators this session,” Cecil Pearce, AIA Southeast Region vice president said, “and although they were under great political pressure to approve a bill putting additional regulatory burdens on the insurance industry, in the end they passed a balanced package of reforms.”
Legislative leaders also addressed the financial and operational challenges faced by Citizens Property Insurance Corp., (Florida’s insurer of last resort), including provisions to reduce its exposure over time and overhaul its management and service operations.
“The political leadership now understands that the pressing issue for the state is attracting new insurance capital to cover Florida’s property risks,” Pearce said. “This measure takes the first step toward rate modernization, with the adoption of a flex rating system for homeowners insurance.”
Source: American Insurance Association