Legal Commentary

06/18/2019

Comprehensive editorial by Sun-Sentinel discusses impact of AOB reform and back to back years of hurricanes on Florida’s insurance rates


Like anything else, the editorial writers aren’t experts on insurance and tend to take a simplified view of a very scientific and mathematical topic. Similar to politicians, they believe long-term reforms should result in immediate rate reductions.

Insurance industry experts know different. They know that there will be litigation surrounding the tidal wave of AOB cases for at least the next two years. Rates weren’t able to keep up with the tens of thousands of new cases being filed over the past five or six years.

The editorial also goes into the impact of back-to-back years of hurricanes, western fires and other natural disasters that cost insurers and reinsurers billions. Florida’s domestic insurers write the majority of the state’s home insurance and are reliant on reinsurance. If those rates go up, so will homeowners’ rates.

View the original story: Tallahassee’s policy for insurers: Cut their costs, hope for rate cuts | Randy Schultz

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