Some of my confidential sources told me that the Michael losses are far, far worse on the insurance carriers than any of them let on. You can see the spike in reinsurance rates and sudden reduction in capacity with our Florida HO carriers are a direct result of those losses.
I would think that a large number of the structures, due to age, proximity to coast, & rural locations (off the coastline), would have been insured with E&S markets. I don’t know the area well other than doing some fishing in Cape San Blas & St. Georges Island, so I may be wrong. But if so, not sure how much control or influence regulators would have. We’re still getting roof claims from Irma and that will two (2) years next month.
The issues with insurance costs and availability are related to claim creep from Matthew and Irma resulting in increased costs for reinsurance, Demotech increasing first reinsurance tower requirements to 130 years from 100 and availability is a result of increased reinsurance costs combined with the costs of AOBs from prior years as well as the associated legal costs incurred. You will notice a large number of carriers are currently filing limited reinsurance increases, supplementing the increases taken earlier in the year.
Some of my confidential sources told me that the Michael losses are far, far worse on the insurance carriers than any of them let on. You can see the spike in reinsurance rates and sudden reduction in capacity with our Florida HO carriers are a direct result of those losses.
I would think that a large number of the structures, due to age, proximity to coast, & rural locations (off the coastline), would have been insured with E&S markets. I don’t know the area well other than doing some fishing in Cape San Blas & St. Georges Island, so I may be wrong. But if so, not sure how much control or influence regulators would have. We’re still getting roof claims from Irma and that will two (2) years next month.
The issues with insurance costs and availability are related to claim creep from Matthew and Irma resulting in increased costs for reinsurance, Demotech increasing first reinsurance tower requirements to 130 years from 100 and availability is a result of increased reinsurance costs combined with the costs of AOBs from prior years as well as the associated legal costs incurred. You will notice a large number of carriers are currently filing limited reinsurance increases, supplementing the increases taken earlier in the year.