Home News Another Florida property insurer filed plans to withdraw from state

Another Florida property insurer filed plans to withdraw from state

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one of Floridalargest home insurance company – home St. Petersburg – announced plans to leave the state. This means more Floridians will be forced to find new insurance.

The United Property & Casualty Insurance Co. announced Thursday that it has submitted plans to exit the so-called personal insurance market in Florida, Texas and Louisiana. It also plans to file a withdrawal plan in New York.

According to a news release from the parent company, the plan “will effectively move United P&C into an orderly runoff,” meaning it will be phased out as policies are renewed. The announcement, in part, pointed to problems in obtaining reinsurance, which is critical backup coverage for handling hurricane claims and the like.

Dan Peed, Chairman and CEO of United Insurance Holdings, said, “Given the significant uncertainty regarding the future availability of reinsurance in our personal insurance business, we have decided to move United P&C into an orderly manner. We believe it is prudent and necessary to put it on the runoff to protect the company and its policyholders.” in a prepared statement. “We are actively pursuing opportunities to leverage our talent, technology and other capabilities. Our commercial operations continue to perform well and provide a stable platform for building new engines of growth and profitability. to the company.”

read: How Florida homeowners can protect themselves as insurance premiums soar and insurers refuse to renew policies

The parent company said in July it had begun a “review of its strategic and financing options” amid financial losses. Exceptional” to “M Moderate”.

According to a news release on Thursday, Demotech informed United Property & Casualty that it was withdrawing its rating on the insurer. The withdrawal of ratings portends that some insurers will be declared insolvent and placed under control.

Thursday’s announcement did not disclose how many customers in Florida and other states were affected. But an investor presentation by United Insurance Holdings in May listed about 185,000 policies in Florida as of March 31.

United Property & Casualty is the latest insurer to either exit the Florida market following a loss or significantly reduce coverage. In a sign of trouble, five property and casualty insurers have been deemed insolvent since his February, and many homeowners have few other insurance options, so the state-backed civil property insurer has swelled to more than 1 million contracts.

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At a state cabinet meeting on Tuesday, Insurance Commissioner David Altmeyer acknowledged that Florida is dealing with a “very difficult market.” But he said the state has taken “a significant number of proactive steps to address this crisis”, between legislation passed in recent years and a special legislative session in May.

“As I have said many times before, we cannot solve this insurance crisis overnight. Unfortunately, it took many years to do so.” The steps we have taken will be an important step in addressing this issue.”

In addition to the difficulty of obtaining reinsurance, property insurers have accused numerous lawsuits in Florida of financial problems. Florida, Louisiana, and Texas are also vulnerable to hurricanes.

Insurance lobbyist and former regulator Lisa Miller said of United Property & Casualty’s decision on Thursday, “Extreme weather, coupled with runaway lawsuits, is the reason for this announcement.

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After United Property & Casualty’s first demotech downgrade, on Aug. 2, the state insurance regulator placed the company in a new temporary program aimed at helping homeowners continue to be covered. I put it in.

The program includes civil property insurance that serves as financial support for downgraded private insurers. Citizens have taken on the role of reinsurance to ensure that claims are paid if insurers become insolvent.

Financial ratings are important because mortgage giants Fannie Mae and Freddie Mac require homes to be insured by financially sound companies. For insurers rated by Demotech, Fannie Mae and Freddie Mac require an ‘A’ or higher rating.

United Property & Casualty’s Demotech downgrade has moved the insurer below an A rating. The state first aid program is designed to satisfy Fannie Mae and Freddie Mac in such situations. We use exceptions that apply when you are responsible for

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