FAIR is deeply concerned about the recently reported operating results of Florida-based insurance companies. We have also heard from a number of affected policyholders of insurance companies that have failed, i.e., Florida Specialty, Windhaven. Fourth quarter 2019 financial data will result in additional operating losses beyond the dollar amounts already reported. Moreover, Floridians will face some insurance company rating downgrades in the near future.
Under certain circumstances, policies issued by downgraded insurers may not comply with federally backed mortgage requirements. Policyholders, insurance agents, lenders and realtors will be scrambling to find insurers acceptable in the mortgage market. This may also result in policies being transferred to government-owned Citizens Property Insurance Corporation, which is not a great option for the state or policyholders.
Absent substantive legislative reforms to fully curb market distortions specific to Florida, significant double-digit rate increases will become commonplace, adversely impacting every aspect of Florida’s otherwise vibrant economy.
Fortunately, the Florida legislature starts its session work on January 14th. Legislative action can favorably impact both the frequency and need for rate increases in Florida’s residential homeowners insurance market. FAIR is asking state regulators and legislators to develop and pass balanced and meaningful reforms to provide relief to Florida’s policyholders.