{"id":1053,"date":"2024-10-14T20:20:10","date_gmt":"2024-10-14T20:20:10","guid":{"rendered":"http:\/\/cherishedmemoriesstudios.com\/?p=1053"},"modified":"2024-10-16T16:37:03","modified_gmt":"2024-10-16T16:37:03","slug":"florida-insurerscan-weather-anotherbig-storm-this-season","status":"publish","type":"post","link":"http:\/\/cherishedmemoriesstudios.com\/index.php\/2024\/10\/14\/florida-insurerscan-weather-anotherbig-storm-this-season\/","title":{"rendered":"Florida InsurersCan Weather AnotherBig Storm This Season"},"content":{"rendered":"
\"\"<\/a><\/figure>\n<\/p>\n

Despite warnings from two leading insurance rating agencies that Hurricane Milton weakened or threatened Florida\u2019s recovering home insurance market, the market \u201ccan manage losses\u201d from the Category 4 storm \u201cand are ready to cover yet another hurricane,\u201d if one should come this season, according to industry experts who spoke with the South Florida Sun Sentinel.<\/a><\/em><\/p>\n

AM Best<\/a> and Fitch Ratings<\/a> each issued reports last week warning that Milton could stretch liquidity of Florida-based residential insurers that are primarily focused on protecting in-state homeowners. But experts closer to Florida\u2019s insurance industry cast doubt on those assertions. One reason is the two companies don\u2019t rate most of the domestic Florida insurers whose financial strength they question, the Sun Sentinel<\/em> reported.<\/p>\n

While cautioning that loss estimates haven\u2019t been released yet from catastrophe modelers, Florida market experts said the state\u2019s insurers have sufficient reinsurance capital to weather not only hurricanes Debby, Helene, and Milton but another Milton-sized storm if one emerges during the latter portion of the 2024 Atlantic season.<\/p>\n

Karen Clark, president of catastrophe modeler Karen Clark & Co., told the Sun Sentinel<\/em>, \u201cFlorida insurers and the reinsurers that protect them use sophisticated tools to understand the probabilities of hurricane losses of different sizes.\u201d<\/p>\n

Joe Petrelli, president of Demotech \u2013 the only rating firm that reviews the financial health of most Florida-based property insurers \u2013 said insurers can purchase additional reinsurance capacity if they use up what they purchased to get them through the year.<\/p>\n

\u201cCarriers will have catastrophe reinsurance in place for another event, so it should not be an issue,\u201d Petrelli told the Sun Sentinel<\/em>.<\/p>\n

\u201cWhile we expect Milton to be a larger wind loss event compared to hurricanes Debby and Helene, we do not anticipate it to be near the level of insured losses caused by Hurricane Ian,\u201d Mark Friedlander, Triple-I\u2019s director of corporate communications said.<\/p>\n

Ian was a Category 4 major hurricane that made landfall in Southwest Florida in September 2022 and caused an estimated $50 billion to $60 billion in private insured losses. The estimate accounted for up to $10 billion in litigated claims due to one-way attorney fees that were in effect at the time of the storm.<\/p>\n

\u201cThe market is in its best financial condition in many years due to state legislative reforms in 2022 and 2023 that addressed the man-made factors which caused the Florida risk crisis \u2013 legal system abuse and claim fraud,\u201d Friedlander said. \u201cFlorida residential insurers also have adequate levels of reinsurance to cover catastrophic loss events like Milton.\u201d<\/p>\n

Learn More:<\/em><\/strong><\/p>\n

Triple-I \u201cState of the Risk Issues Brief\u201d: Attacking Florida\u2019s Property\/Casualty Risk Crisis<\/a><\/p>\n

Florida Homeowners Premium Growth Slows as Reforms Take Hold, Inflation Cools<\/a><\/p>\n

Legal Reforms Boost Florida Insurance Market; Premium Relief Will Require More Time<\/a><\/p>\n

It\u2019s not too late to register for <\/em><\/strong>Triple-I\u2019s Joint Industry Forum<\/em><\/strong><\/a>: Solutions for a New Age of Risk. Join us in Miami, Nov. 19 and 20.<\/em><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Despite warnings from two leading insurance rating agencies that Hurricane Milton weakened or threatened Florida\u2019s recovering home insurance market, the market \u201ccan manage losses\u201d from the Category 4 storm \u201cand are ready to cover yet another hurricane,\u201d if one should come this season, according to industry experts who spoke with the South Florida Sun Sentinel. AM Best and Fitch Ratings each issued reports last week warning that Milton could stretch liquidity of Florida-based residential insurers that are primarily focused on protecting in-state homeowners. But experts closer to Florida\u2019s insurance industry cast doubt on those assertions. One reason is the two companies don\u2019t rate most of the domestic Florida insurers whose financial strength they question, the Sun Sentinel reported. While cautioning that loss estimates haven\u2019t been released yet from catastrophe modelers, Florida market experts said the state\u2019s insurers have sufficient reinsurance capital to weather not only hurricanes Debby, Helene, and Milton but another Milton-sized storm if one emerges during the latter portion of the 2024 Atlantic season. Karen Clark, president of catastrophe modeler Karen Clark & Co., told the Sun Sentinel, \u201cFlorida insurers and the reinsurers that protect them use sophisticated tools to understand the probabilities of hurricane losses of different sizes.\u201d Joe Petrelli, president of Demotech \u2013 the only rating firm that reviews the financial health of most Florida-based property insurers \u2013 said insurers can purchase additional reinsurance capacity if they use up what they purchased to get them through the year. \u201cCarriers will have catastrophe reinsurance in place for another event, so it should not be an issue,\u201d Petrelli told the Sun Sentinel. \u201cWhile we expect Milton to be a larger wind loss event compared to hurricanes Debby and Helene, we do not anticipate it to be near the level of insured losses caused by Hurricane Ian,\u201d Mark Friedlander, Triple-I\u2019s director of corporate communications said. Ian was a Category 4 major hurricane that made landfall in Southwest Florida in September 2022 and caused an estimated $50 billion to $60 billion in private insured losses. The estimate accounted for up to $10 billion in litigated claims due to one-way attorney fees that were in effect at the time of the storm. \u201cThe market is in its best financial condition in many years due to state legislative reforms in 2022 and 2023 that addressed the man-made factors which caused the Florida risk crisis \u2013 legal system abuse and claim fraud,\u201d Friedlander said. \u201cFlorida residential insurers also have adequate levels of reinsurance to cover catastrophic loss events like Milton.\u201d Learn More: Triple-I \u201cState of the Risk Issues Brief\u201d: Attacking Florida\u2019s Property\/Casualty Risk Crisis Florida Homeowners Premium Growth Slows as Reforms Take Hold, Inflation Cools Legal Reforms Boost Florida Insurance Market; Premium Relief Will Require More Time It\u2019s not too late to register for Triple-I\u2019s Joint Industry Forum: Solutions for a New Age of Risk. Join us in Miami, Nov. 19 and 20.<\/p>\n","protected":false},"author":1,"featured_media":1055,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[15],"tags":[],"_links":{"self":[{"href":"http:\/\/cherishedmemoriesstudios.com\/index.php\/wp-json\/wp\/v2\/posts\/1053"}],"collection":[{"href":"http:\/\/cherishedmemoriesstudios.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cherishedmemoriesstudios.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/cherishedmemoriesstudios.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/cherishedmemoriesstudios.com\/index.php\/wp-json\/wp\/v2\/comments?post=1053"}],"version-history":[{"count":2,"href":"http:\/\/cherishedmemoriesstudios.com\/index.php\/wp-json\/wp\/v2\/posts\/1053\/revisions"}],"predecessor-version":[{"id":1056,"href":"http:\/\/cherishedmemoriesstudios.com\/index.php\/wp-json\/wp\/v2\/posts\/1053\/revisions\/1056"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/cherishedmemoriesstudios.com\/index.php\/wp-json\/wp\/v2\/media\/1055"}],"wp:attachment":[{"href":"http:\/\/cherishedmemoriesstudios.com\/index.php\/wp-json\/wp\/v2\/media?parent=1053"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cherishedmemoriesstudios.com\/index.php\/wp-json\/wp\/v2\/categories?post=1053"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cherishedmemoriesstudios.com\/index.php\/wp-json\/wp\/v2\/tags?post=1053"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}