Coral Gables, June 20, 2022 – SL FINANCIAL is an actuarial consulting and advisory firm based in Miami, Florida. We offer complete actuarial solutions in both traditional (re)insurance and alternative risk financing industries.
Florida’s property insurance market is one of the most complex in the world. Following years of (AOB) abuses, the Florida Legislature concluded a Special Legislative Session specifically to address property insurance. The Legislature passed two bills – Senate Bill 2D and Senate Bill 4D – and Governor DeSantis signed each on May 26, 2022.
Both bills include changes that will impact you as a property insurance policyholder. Below is an overview of key changes. All changes are effective immediately.
Specific provisions to stabilize the market include:
Increases Insurance Claims Transparency
Anti-Fraud and Legal Reforms
Initial Market Reaction
Initial market reactions suggest that reform is perceived as inadequate. As an example and in an exclusive interview with Artemis, Joseph Petrelli, President and Co-Founder of rating agency and consultant Demotech, Inc. explained that the special session reforms passed by the Florida legislature last week are “inadequate”, when measured against what the state really needs to fix its property insurance marketplace.
Early indications from the Florida reinsurance 1/1 renewal also seem to suggest that reform had limited impact with 20-30% rate rise expected along with a quarter to a fifth of reinsurance limit not yet been censured, priced and finalize across the market on June 1, 2022.