Florida’s Citizens Property Insurance may be heading toward privatization. The state-run program is considered the last resort for affordable insurance coverage in the state, offering policies that other insurers shy away from at lower rates. Jim Malone, CEO of the state sponsored company, has been considering the idea for some time and has recently proposed the idea to legislators. If the program is to become privatized, the effort would take well over a year, during which time the company will no longer be able to take on additional clients. Malone…
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Risk Management Services hurricane catastrophe model approved by Florida Commission
The residential property insurance marketplace in the state of Florida is expected to face an even greater amount of volatility after the modeling commission for the state approved the use of a new catastrophe model by Risk Management Services (RMS). The RMS U.S. Model Version 11.0 was approved by the Florida Commission on Hurricane Loss Projection Methodology, which allows insurance companies to use it for the calculation of the potential exposure to hurricane loss. That said, this model has not been without controversy, especially in terms of its changes to…
Read MoreNationwide answers probing questions in Florida
Representatives from Nationwide Mutual Insurance where called upon by Florida officials to testify on how insurers handle life insurance payouts in the state. Several of the state’s insurance companies have been the target of controversy lately after being accused by regulators of holding back payouts. Allegedly, these companies withhold funds despite having full knowledge that a policyholder has passed away. According to regulators, these funds may be being held in safekeeping until they are designated as unclaimed, at which point the insurer is no longer liable for payouts. Nationwide assured…
Read MoreToxic Chinese drywall battle continues
There has been a dispute raging in Florida regarding damage done to properties using toxic, Chinese-made drywall. Many insurance companies have denied payment for damaged properties that make use of the material, leaving many homeowners to shoulder the cost of rebuilding after any kind of disaster. The material has also been the cause for some health issues, adding yet another facet to the already murky context of insurance coverage. However, a Florida judge has recently issued a ruling that could change all that. In the wake of Hurricane Katrina, many…
Read MoreFlorida insurance bill opens up new market for audit
New legislation in Florida may mandate the state’s insurers to present the books of affiliated management companies for audits. This legislation would close a loophole left over from the last time the state’s insurance laws were amended, a loophole that kept this information private. Insurers also exploited the loophole to spend the money collected through premiums on ventures that they owned. Such spending was not regulated in any way by the state. The legislation is an amendment added to a much larger insurance bill, sponsored by Senator Garrett Richter of…
Read MoreAllstate Insurance looking to grow in Florida
Parts of Florida may see a small economic boost in Jobs. Allstate Insurance Company wants to expand its presence there and open around 50 new agencies. They’re estimating about 130 new jobs across the state would be created by this addition of offices. This is a big move for the insurance company that just six years ago dropped more than 95 thousand policies, and began scaling back the private property policies (in Florida). They based their decision to expand their agencies because of the huge growth in the north Florida…
Read MoreFlorida sinkholes causing major damage to homes
The sunshine state is having more problems with sinkholes. A Florida company called CDS Business Mapping is working with insurance agents and underwriter’s to provide risk reports based on geographic data and maps. The company has mapped areas in ten counties that are sinkhole hazards. Florida’s Insurance Commissioner stated that sinkhole claims are one of the top five cost drivers that are causing insurance companies huge financial losses. In three years, Citizen’s insurance has paid almost 250 million dollars in sinkhole claims; and has another 100 million reserved for “in…
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