Florida Insurance Commissioner Updates Florida Cabinet on Assignment of Benefits; Demotech Suspends Florida Property Insurer Guidance
Feb 7, 2017
Florida Insurance Commissioner David Altmaier updated the Florida Cabinet on the topic of assignment of benefits this morning, February 7, 2017, noting there has been a significant reduction in underwriting gains and Florida domestic insurer net income in 2016.
To access his presentation, click here.
Yesterday, Demotech announced in a news release that it would be suspending its guidance for Florida property insurers. Demotech explained, in part:
“Although a rigorous review of the sufficiency of premiums, adequacy of loss and loss adjustment expense reserves, and the quality and quantity of reinsurance are key components of our analysis, the ability of carriers to implement business plans is also heavily dependent on the operating environment. Claims procedures, processes, and protocols utilized in the past must be replicable in the future if loss experience is to be predictable and claims handling scalable. The assignment of benefits (AOB) situation in Florida is unlike any other in the United States and two recent court decisions, Johnson (September 2016) and Sebo (December 2016), have also revised claims procedures, practices, and protocols from the industry standards that previously existed to a ‘Florida only’ standard.
“In response to these revisions to established practices, Demotech is suspending its guidance pending Florida’s reversion to property insurance claims procedures, practices, and protocols that are identical, or at least more similar, to Florida’s past practices or other scenarios in use throughout the country.”
To read Demotech’s complete news release, click here.
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