OLDWICK, N.J.--(BUSINESS WIRE)--In this episode of AMBestTV, Michelle Baurkot, director, and Chris Draghi, senior financial analyst, both of AM Best, said that Florida writers struggled to turn a 2019 underwriting profit even with the absence of a major hurricane. Click on http://www.ambest.com/v.asp?v=ambfloridareport720 to view the entire program.
Prior to the COVID-19 pandemic, Florida's personal property insurers faced an uphill battle dealing with a number of threats and weakened results. Draghi spoke about what challenges Florida property insurers are facing as it pertains to the shifting reinsurance market.
“Insurers are facing a hardening reinsurance market that began last year and escalated this year, with some reports predicting a continuation in the near term,” said Dragi. “Those placing new reinsurance programs at the June renewal season have largely faced significant double-digit rate increases. Insurers are challenged to protect profits with higher costs of reinsurance dampening potential margins. Companies are faced with complex decisions in an effort to maintain effective catastrophe coverage that appropriately protects capital positions.”
Baurkot highlighted the extent that insurers have been impacted by the pandemic.
“Florida-domiciled personal property insurers were largely well-positioned for this pandemic. The lines of business predominantly written were relatively unaffected as far as coverage is concerned, given their focus on homeowners, fire and allied lines. While some writers did diversify into smaller commercial lines, it represents a smaller piece of the book and many products have exclusionary language. Therefore, the loss impact to insurers is not expected to be significant.”
To access the related market segment report, titled, “Multiple Threats Flank the Florida Property Insurance Market,” please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=298867.
Recent episodes of AMBestTV include:
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- AM Best: Workers’ Comp Writers Brace for COVID-19 Hit: Decreased premiums and unexpected claims could negatively impact workers’ compensation writers, said Sridhar Manyem, director, and Dan Mangano, financial analyst, both of AM Best: http://www.ambest.com/v.asp?v=workerscomp620.
- IICF Raises $1 Million to Help Children in Pandemic: Lloyd’s donated $500,000 to the new children’s fund, said Hank Watkins. president of Lloyd’s Americas, and board member, Insurance Industry Charitable Foundation’s Northeast Division: http://www.ambest.com/v.asp?v=watkins620.
- Independent Adjusters Taking COVID-19 Precautions: Adjusters are taking extra precautions in the field, including wearing masks and gloves, said independent adjuster Peter Crosa of Peter J. Crosa and Co.: http://www.ambest.com/v.asp?v=crosa720.
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