July 2014

Both FNHC and C.A. Bancorp are each putting up $14 million for a 42 percent ownership stake each in the new venture.

Transatlantic Reinsurance Co. is getting a minority position in the new venture with a $5 million investment, according to the announcement.

The new carrier will target the standard homeowners market, whereas Federated National currently targets the preferred home market. Federated National said it currently binds only 12 percent of the submissions it gets from its more than 3,500 agents. Monarch will allow it to provide these agents with more coverage options.

Monarch will be a separate insurance company from Federated National with its own capital base and own rates and forms.

In 2013, Federated National reported net income of $12.7 million. It reported $104.4 million in net written written premium and a policy count of 116,400, which was up more than 90 percent from 2012.

The launch of Monarch is subject to the receipt of regulatory approvals and other customary conditions. The investors hope the new company will be able to issue its first policy in January, 2015.

“This is a great opportunity for us to partner with two quality organizations that see an opportunity in the Florida homeowners insurance. Additional property capacity is capital intensive and has been long sought after in the Florida marketplace,” said Michael H. Braun, FNHC’s CEO.

Please call L & S Insurance at 1-888-244-7400 for quotes on Home, Auto, Flood, Business & Commercial, & Life & Financial products as well.


Florida’s state-backed property insurer’s proposed rate reduction is raising questions about whether it will make the insurer competitive with the private market.

Citizens Property Insurance Corp. recently proposed 2015 rates that include a statewide average 2.9 percent rate decrease on all residential policyholders.

If approved by regulators, seven in 10 Citizens personal lines policyholders will see a rate reduction next year. Th statewide average homeowners’ premium would drop from $2,538 to $2,379.

Not everyone, however, is greeting the proposed rate cut as good news.

Florida Property and Casualty Association Executive Director William Stander said he has heard rumblings through the industry over what the rate cut could mean for insurers’ expansion plans.

“I have heard some concerns among companies that Citizens’ rate trajectory potentially could interfere with their depopulation efforts,” said Stander.

Florida Association of Insurance Agents President Jeff Grady said that rate changes pitted what actuaries might calculate against public policy decisions. But just as a matter of perception, he said, any rate cut raises questions.

“It does seem to depart from the insurer of last resort having the highest rates,” Grady said.

As to the matter of competition, the state Office of Insurance Regulation approved 43 

Please call L & S  Insurance at 1-888-244-7400 for quotes on Home, Auto, Flood, Business & Commercial, & Life & Financial products as well. Please enjoy the full article below;


Please call L & S Insurance at 1-888-244-7400 for quotes on Home, Flood, Business & Commercial, & Life & Financial products as well.

Six months after Hurricane Sandy, we surveyed homeowners in New York City who live in a flood-prone area about their flood risk perceptions and flood insurance purchases. The survey is part of a research program in conjunction with the Zurich flood resilience alliance that seeks to improve community flood resilience. The survey was completed by 1,035 people who own a home with a ground floor in a flood-prone area of New York City.

All respondents should have an interest in flood insurance if they perceive the flood risk accurately.

FLOOD RISK PERCEPTION: Most respondents perceive the flood risk to be high: 86% of the respondents believe that they live in a flood-prone area. However, most underestimate the damage a flood could cause. Only 9% of responders correctly assess the risk compared to experts’ estimates (within a 25% margin of error).

People tend to overestimate their flood probability and underestimate the flood damage they would suffer.

IMPACT OF CLIMATE CHANGE: Over 40% of respondents expect that climate change will not increase their flood risk in the future. This finding suggests that many people are not in line with the scientific consensus about the projected climate change impact of increased storm surge and sea level rise on flood risk in New York City.
FLOOD INSURANCE PURCHASE: 44% of respondents stated they purchased flood insurance because it was mandatory. Only 21% bought flood insurance voluntarily, 33% did not have coverage, and 2% did not know whether they had flood coverage. Compared with uninsured homeowners, those who voluntarily purchased flood insurance worry more about flooding.

On average, these insured homeowners have higher expectations of both the flood probability and flood damage relative to the uninsured respondents.

We suggest two measures to correct individuals’ risk perception and encourage them to purchase insurance protection when needed:

Instead of framing the chances of a flood as 1-in-100 in any given year, inform residents that the chances are greater than 1-in-5 (20%) of flooding in the next 25 years.

Highlight the financial consequences if a flood occurs and the homeowner is uninsured.


Wharton Center for Risk Management and Decision Processes – Three decades of catastrophe management research 3730 Walnut Street, Suite 500, Philadelphia, PA 19104 ~ http://www.wharton.upenn.edu/riskcenter

Homeowners might be more likely take protective actions if they realize how bad a flood would be, rather than focusing only on probability.

FEMA flood maps currently depict only the likelihood of a flood without depicting the resulting damage should

Please call L and S Insurance at 1-888-244-7400 for Flood Insurance info and quotes on Home, Flood, Auto, Business and Commercial, Life and financial products as well. You can use the interactive map viewing tool to find out if your home or business is in a flood zone. To use the tool, follow these steps: 1. Click on the search tool below. 2. Type in the address of your property in the area at the top right, above the map titled “Find address or place”, and click on the magnifying glass to search. 3. Use the tool on the left side of the map to zoom in and locate your property. 4. Click on your property and the 2011 FEMA Flood Designations box will let you know your current and proposed FEMA flood zone designation. http://www.arcgis.com/home/webmap/viewer.html?webmap=64a60d8ee29d4bbc90e5156762ed8855

A tropical depression off the coast of Florida is forecast to grow into Hurricane Arthur and strike North Carolina’s Outer Banks during the Fourth of July holiday.

The storm was stationary 95 miles (153 kilometers) southeast of Cape Canaveral, Florida, with maximum winds of 35 miles per hour as of 8 a.m. local time, the National Hurricane Center said in an advisory. Tropical storm watches were posted for Florida’s eastern coast from Fort Pierce to Flagler Beach because the system is expected to reach that level later today.

Please call L & S Insurance at 1-888-244-7400 for quotes on Home, Auto, Flood, Business & Commercial, & Life & Financial products as well. Please enjoy the full article below. Track the storm on our web page http://www.yourinsurancepros.com . Citizens insurance is shut down today and tomorrow most likely and could be longer.