Here are some recent articles of interest that I found this week for the Florida insurance industry. Enjoy!
Flood Insurance Enters the Limelight as Hurricane Season Begins
The 2014 Atlantic hurricane season has started, and weather forecasters are predicting that this season may be quite active, but the storms emerging during the season may be modest due to the effects of El Nino. There is no certain way to tell whether or not the hurricane season will be free of any powerful storms, as 2012′s Hurricane Sandy was quite unexpected itself. The impact of an unexpected storm can be devastating, which is why there is a growing interest in insurance coverage that is designed to protect against such natural disasters. Read more here..
The Insurance Industry and Climate Change
When it comes to climate change, insurance can be a tricky subject. The global insurance industry does not typically deal in “what ifs” and many large insurers are not willing to debate whether or not climate change is real. These insurers are more apt to address the issue of climate change by offering new insurance products and finding ways to mitigate the risks associated with the phenomenon. Powerful storms, rising temperatures, and depleting food and water resources are becoming issues that the insurance industry is beginning to involve itself in. Read more here…
Florida Gov. Scott Signs Flood Insurance, Credit Claims, Parasailing Bills
Florida Gov. Rick Scott signed into law on Friday dozens of measures covering everything from flood insurance, electronic cigarettes and parasailing.
The Republican governor, who has been holding re-election campaign events for most of this month, did the bill signings privately. Scott and previous governors usually hold public bill signings during the summer, but he has spent little time in the Capitol since the end of the annual legislative session. Read more here..
Florida ‘Hurricane Tax’ Sent to Early Retirement
A1.3 percent surcharge on most property/casualty policies in Florida to help pay for past hurricane claims is coming to an end earlier than originally planned.
The Florida Cabinet voted this week to end the assessment on policyholders that was begun in 2008 and was expected to continue until 2016.
State law requires an assessment whenever the Florida Hurricane Catastrophe Fund (FHCF) does not have enough cash to pay insurers for the losses they incur. The surcharge, called the “hurricane tax” by some, is used to fund revenue bonds to pay the losses.
FHCF ran out of money following Wilma, which was the fourth storm of 2005 and the eighth storm that hit the state during a two-year period. The FHCF had to borrow about $2.6 billion to pay its obligations to private insurers. Read more here…
Florida Judge Approves Deal for Heritage to Assume Sunshine State Policies
A Florida judge has signed-off on a plan by regulators to allow a failed Florida property insurer’s policyholders to be assumed by another company, although policyholders will retain the option to seek coverage elsewhere.
Leon County Judge Kevin Carroll on Friday approved the deal that could result in Heritage Property and Casualty Insurance Co. assuming as many as 36,000 policyholders left seeking coverage due to the insolvency of the Sunshine State Insurance Co.
The Jacksonville, Fla.-based Sunshine State was taken over by the Department of Financial Services Division of Rehabilitation and Liquidation on June 3 after the state Office of Insurance Regulation reported the insurer could no longer meet the state’s capital requirements. Read more here…
Florida Private Flood Bill Now Law But Market May Take a While to Develop
Florida Gov. Rick Scott has signed legislation designed to encourage private insurers to offer flood insurance, but the industry is tamping down expectations that it will result in a viable market in the near future.
The legislation creates a statutory framework allowing private insurers to offer four different types of flood coverage ranging from standard coverage, which mirrors the current National Flood Insurance Program policies, to three other enhanced coverages.
The legislation also allows private insurers to file their own rates prior to October 1, 2019, after which they must be approved by regulators. The time period is so Florida insurers can develop state flood data that is currently not available under the NFIP. Read more here…
Aspen Opens Miami Hub for Expansion in Latin America
Aspen Insurance said it is expanding its presence in Latin America with the opening of a regional hub in Miami, joining a group of re/insurers that have also located Latin American operations in the city.
The Miami office and Aspen’s expanded energy team will serve the onshore energy market in Latin America, which is part of Aspen’s previously announced strategy to expand its operations selectively in targeted market segments, according to the announcement.
The company recently named Gary Windsor to spearhead its onshore energy expansion into Latin America. The team will begin writing business from Miami in July, according to Tony Carroll, executive vice president and head of Marine, Energy and Construction. Read more here…
Thank you for reading (and sharing). Stay tuned for next week’s weekly review for Florida Insurance Law!
