This period in time looks like the end of the era for FL HO carriers. While I don’t have expertise in financials, looking at many, if not most, of the carriers are in nearly unsalvageable shape. They have been losing tens of millions of $ each for the at least the last 3 years, They have all undertaken a deliberate policy reduction strategy, raised premiums, selectively non-renewed business, fought claims, tried “directed repair” programs and every other manner of defensive actions. They have had tens of millions of $ pumped into each of them and some of them are publicly traded (like FedNat) so they have access to even more capital through stock sales. Still…here we are.
Well I have my popcorn ready. Mortgage rates have doubled. Homes have appreciated substantially. Taxes up, and home insurance screaming higher. What could go wrong?
FedNat is not the only carrier with $100million loss last quarter. 2 more of the top 10 carriers in Florida also had $100m losses. I have been in this FL Market for over 20 years and its the worse I have seen. One storm this hurricane season and it will be detrimental for Florida insurance market.
I’ve been saying for months that things will get much worse in Florida before they get better, if they ever do get better, special session or not. The entire litigation-industrial complex is malignant. They (the renowned Florida lawmakers) will fiddle around with this thing when they really need to drive a stake into the beast’s malformed heart. Thing is, they won’t drive that stake until they’ve tried and failed at everything else under the sun. One big storm surely means that it’s over. Reinsurers will flee and the guaranty fund will become the claim-payer of choice. Then the guaranty fund assessments will do-in or drive out those who haven’t been mortally wounded already, kind of like radioactive fallout after an atom bomb. I don’t see a way out of this with the current cast of characters.
FL Guv
Bye Bye Birdie. Last one out, turn out the lights!
A special session in May comes too late to stave off serious issues of reinsurance for the June 1 renewal period.
This period in time looks like the end of the era for FL HO carriers. While I don’t have expertise in financials, looking at many, if not most, of the carriers are in nearly unsalvageable shape. They have been losing tens of millions of $ each for the at least the last 3 years, They have all undertaken a deliberate policy reduction strategy, raised premiums, selectively non-renewed business, fought claims, tried “directed repair” programs and every other manner of defensive actions. They have had tens of millions of $ pumped into each of them and some of them are publicly traded (like FedNat) so they have access to even more capital through stock sales. Still…here we are.
It’s going to be an interesting Reinsurance renewals season, to say the least. Expecting a wave of casualties.
Well I have my popcorn ready. Mortgage rates have doubled. Homes have appreciated substantially. Taxes up, and home insurance screaming higher. What could go wrong?
FedNat is not the only carrier with $100million loss last quarter. 2 more of the top 10 carriers in Florida also had $100m losses. I have been in this FL Market for over 20 years and its the worse I have seen. One storm this hurricane season and it will be detrimental for Florida insurance market.
I’ve been saying for months that things will get much worse in Florida before they get better, if they ever do get better, special session or not. The entire litigation-industrial complex is malignant. They (the renowned Florida lawmakers) will fiddle around with this thing when they really need to drive a stake into the beast’s malformed heart. Thing is, they won’t drive that stake until they’ve tried and failed at everything else under the sun. One big storm surely means that it’s over. Reinsurers will flee and the guaranty fund will become the claim-payer of choice. Then the guaranty fund assessments will do-in or drive out those who haven’t been mortally wounded already, kind of like radioactive fallout after an atom bomb. I don’t see a way out of this with the current cast of characters.
Yes, but we solved that problem with Disney. So, we’ve got that going for us. Which is nice.