Prepared Insurance


Please call  Lee from Calles Financial and Chaisteli Insurance  at 954-270-7966, Your Insurance Consultant  about Home Insurance, Auto, Flood, Private Flood, Car, Life Insurance & Financial Products, Business  & Commercial Policies, and Group Products for business owners to give Employees benefits at no cost to the employer.

If your carrier is experiencing 100% or more from claims last year, then expect huge rate hikes this year. Not counting Reinsurance hikes this summer, rates could jump 30-40% for the next 2 years!!! Do you need to shop your Insurance, Home, Auto, Life or Long Term Care, I can help you understand and shop rates, premiums, coverages or the lack thereof.

The long-awaited Demotech rating decisions for Florida domestic carriers are in, with many carriers having satisfied necessary steps to avoid ratings downgrades by the financial analysis firm.

After affirming a slew of companies in mid-March, Demotech announced April 2 that the remaining carriers that had yet to be decided were affirmed (see chart) because of enhancements to their business models

On March 30, Demotech affirmed the ‘A’ financial stability ratings of the following companies: Avatar Property & Casualty Insurance Co., Centauri Specialty Insurance Co., Cypress Property & Casualty, Safepoint Insurance Co., and Tower Hill Signature Insurance Co. Also affirmed were Tower Hill Select Insurance Co. and Omega Insurance Co., after their merger into Tower Hill Signature was approved by the Florida Office of Insurance Regulation on March 25.

Since Demotech sounded the alarm in January that as many as 18 Florida carriers could see downgrades due to deteriorating insurance market conditions in the state, the ratings firm said several actions have been taken: one company was downgraded, one company was acquired by a carrier with an FSR of A; five companies were merged into carriers with FSRs of A, and an additional nine companies enhanced their business models.

The specific actions include:

  • Anchor P&C Assigned an FSR of M – ceased operations
  • Anchor Specialty FSR of A – Acquired by insurer with FSR of A
  • Omega FSR of A – Merged into an insurer with FSR of A
  • Tower Hill Select FSR of A – Merged into an insurer with FSR of A
  • Cypress TX FSR of A – Merged into an insurer with FSR of A
  • Prepared FSR of A – Merged into an insurer with FSR of A

Demotech said other carriers “aggressively enhanced the capability of their business models to respond to the anticipated continuation of jurisdictional and weather-related challenges, the substantial increase in reinsurance costs during 2019, the likely increase in the cost of reinsurance in 2020, and the cost of the Rapid Cash Buildup Program of the Florida Hurricane Catastrophe Fund.”

Those companies include:

  • Centauri Specialty FSR of A, Business model enhanced
  • Centauri National FSR of A, Business model enhanced
  • Safepoint FSR of A, Business model enhanced
  • Gulfstream P&C FSR of A, Business model enhanced
  • Avatar P&C FSR of A, Business model enhanced
  • Capitol Preferred FSR of A, Business model enhanced
  • Security First FSR of A, Business model enhanced
  • Tower Hill Signature FSR of A, Business model enhanced
  • Cypress P&C FSR of A, Business model enhanced

“Our view of Florida’s current residential property insurance marketplace is that the numerous financial and market based criteria that affect Florida residential property insurance have never been more difficult for carriers to navigate since we first rated Florida focused carriers in 1996. The marketplace as well as carrier-specific financial metrics drove the need to consider downgrades,” Demotech said in an April 2 report on its ratings decisions.

The ratings firm said it asked certain Florida insurers to provide projections of their year-end 2019 financials immediately after it finished reviewing third quarter results in November last year. At that time, it also asked those insurers to answer two questions based on the following Florida-specific circumstances: 1. the lingering impact of the judicial activism of the past; 2. the litany of named weather events; 3. increases in the cost of reinsurance, and 4. the specter of additional increases in the cost of reinsurance in 2020.

The questions posed to companies were:

  • Will you continue to be focused on residential property insurance in Florida?
  • If so, based upon the conditions in the marketplace and the operating results that will emanate from those conditions, how will you revise your business model, or otherwise position your company, to combat more of those same conditions in the future?

Demotech said carrier responses used to make ratings decisions included documentation of the company’s jurisdictional diversification, voluntary runoff, marketing existing books of business to other carriers, merging affiliates, or securing assistance.

“The management teams of these carriers have fought the conditions in the most difficult operating jurisdiction in the country to a draw,” the Demotech statement says. “They have addressed the needs of policyholders, investigated and settled claims, paid their employees, producers, and reinsurers, met with us, negotiated with reinsurers for their 2020 programs, and filed timely financial statements in an orderly manner.”

Demotech said it reviewed public and private financial information of companies, including:

  • Managing general agency contract and financial statements, when necessary
  • Holding company financial statements, when necessary
  • Actuarial reports and documents containing appreciably more detail than the actuarial opinion letter, which is a public document
  • Independent audits
  • Anticipated operating results in the form of pro forma financials in a prescribed format
  • Claims adjusting details and reports
  • Litigation services
  • Asset and investment management contracts
  • Disaster recovery plan
  • Catastrophe response plans
  • Catastrophe modelling output
  • A preliminary review of horizontal and vertical reinsurance programs
  • A final review of horizontal and vertical reinsurance programs
  • Review of rate level indications
  • Personal financial statements of key financial supporters.
  • On-site meetings with reinsurers
  • On-site meetings with companies\

Please enjoy the full article below!!

https://www.insurancejournal.com/news/southeast/2020/04/03/563193.htm

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Please call  Lee from Calles Financial and Chaisteli Insurance  at 954-270-7966, Your Insurance Consultant  about Home Insurance, Auto, Flood, Private Flood, Car, Life Insurance & Financial Products, Business  & Commercial Policies, and Group Products for business owners to give Employees benefits at no cost to the employer.

34 Florida carriers have 100% or more claims to revenue last year in 2019. Some are as high as 120% of revenue. AOB has caused this problem with no end in sight for rate hikes. Carriers will start to non renew their books of business, older homes, homes with water damage claims. This will hit the housing market & 1st time Homebuyers chances to buy homes will be even more less likely. There was supposed to be a special session about just Insurance in Tallassee in mId March, but now w/ the COVID-19 break out, that session may never happen this year. Everyone needs to understand their Home Insurance policies, coverages or lack their of.

If you want this full e-mail, please contact me at lee.gorodetsky@gmail.com

Here is the beginning of 12 pages of information and charts & graphs,

 

Demotech set to reveal downgrades as
full-year results show Florida pain
Demotech has affirmed the majority of the 46 Florida homeowners specialists it rates with the
remaining carriers awaiting their fate as the agency completes its review of 2019 financials
that reveal widespread operating losses and actions to shore up balance sheets, The Insurer
can Demotech is the only firm that rates most of the Florida specialists and its financial strength
ratings are critical to them because lenders typically require insurance policies bought by
homeowners in the state to be from A rated carriers.
As previously reported, in January this year the ratings agency warned of a potential slew of
downgrades in response to a range of macroeconomic and unique state specific issues faced
by Florida-focused carriers.
And analysis by this publication reveals 36 out of 46 companies we compiled data on from
2019 statutory annual statements fell to an operating loss in 2019. A total of 34 of the carriers
reported combined ratios of over 100, with 14 at over 120 percent.reveal.

 

 

Please call  Lee from Calles Financial and Chaisteli Insurance  at 954-270-7966, Your Insurance Consultant  about Home Insurance, Auto, Flood, Private Flood, Car, Life Insurance & Financial Products, Business  & Commercial Policies, and Group Products for business owners to give Employees benefits at no cost to the employer.

Here are the ones still in question. The bad ones. Will they be bought out or go out of business by the State Mandate next week. With Hurricane season coming and all the Covid 19 stuff happening, please don’t wait.

The companies that are still in discussions and will either be affirmed or downgraded, as of March 26, include: Avatar Property & Casualty Insurance Co., Centauri Specialty Insurance Co., Cypress Property & Casualty, Omega Insurance Co., Safepoint Insurance Co., Tower Hill Select Insurance Co., and Tower Hill Signature Insurance Co

Please enjoy the full article below;

https://www.insurancejournal.com/news/southeast/2020/03/27/562512.htm

Please call  Lee from Calles Financial at 954-270-7966, Your Insurance Consultant  about Home Insurance, Auto, Flood, Private Flood, Car, Life Insurance & Financial Products, Business  & Commercial Policies, and Group Products for business owners to give Employees benefits at no cost to the employer.

Lighthouse Property Insurance Corp. plans to acquire its sister carrier, Prepared Insurance Company (Prepared), from Prepared Holdings Group.

Lighthouse is a Louisiana-domiciled property and casualty insurance carrier authorized to write policies in Louisiana, Texas, North Carolina and South Carolina. Prepared is a Florida-domiciled property and casualty insurance carrier authorized to write in Florida and Louisiana. The acquisition and merger are subject to regulatory review and approval.

Please enjoy the full article below.

https://www.insurancejournal.com/news/southeast/2020/03/16/561139.htm

This will affect Fort Lauderdale &  S. Florida and since we are in La Nina years, which is also very likely to occur for the next 3-5 years. Please call L & S Insurance at 1-888-244-7400 for free quotes on Home Insurance, Auto, Flood, Private Flood, Business & Commercial policies and Life & Financial products as well.

Ratings company Demotech is holding off on issuing large-scale ratings downgrades of Florida property insurers for now, after a number of insurers heeded its warning of last month about the effects of assignment of benefits abuse and state court rulings by boosting their claims reserves and policyholder surplus.

After warning in February that at least 10 to 15 Florida property/casualty carriers would face downgrades if they did not take immediate action to shore up their reserves in light of deteriorating conditions in the state, Demotech said March 16 that, after working with insurers to make adjustments, it slightly downgraded only one carrier

The ratings firm said it is also monitoring three insurers — Prepared, Mount Beacon and Elements— that have been or are in the process of being sold as a result of the situation in Florida.

Joseph Petrelli, president and CEO of Ohio-based Demotech, which rates 57 carriers in Florida and 397 nationwide, said his company worked individually with companies in Florida to analyze their financial standing, strengthen their claims reserves, and provide other guidance on what they could do to avoid a ratings downgrade. The result has been $355 million in additional reserves and policyholder surplus among the Florida carriers it rates, Petrelli said.

Demotech said last month that Florida’s property insurers are facing an “uncertain operating environment” as a result of the escalating AOB crisis that has caused the number of litigated water loss claims to skyrocket over the past few years, particularly for the state-run insurer Citizens.

Please enjoy the full article below;

http://www.insurancejournal.com/news/southeast/2017/03/17/444778.htm

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

 

The Florida Office of Insurance Regulation has approved the removal of up to 78,897 personal residential policies and 500 commercial residential polices from Citizens Property Insurance Corp. by the following four companies:

  • First Community Insurance Co. ‒ approved to remove up to 12,897 personal residential PLA policies
  • Heritage Property & Casualty Insurance Co. – approved to remove up to 20,000 personal residential policies (17,326 PLA/2,674 CA) and up to 500 commercial residential policies (472 commercial lines account (CLA) and 28 CA)
  • Mount Beacon Insurance Co.  – approved to remove up to 29,000 personal residential policies (25,000 PLA/4,000 CA)
  • Prepared Insurance Co. – approved to remove up to 17,000 personal residential PLA policies

Citizen’s personal lines and commercial lines accounts are mostly non-coastal properties and the coastal account are coastal properties. The take-out periods are April 28, 2015 for personal residential impacting both the PLA/CA policies and April 14, 2015 for commercial residential impacting both the CLA/CA policies. This is part of the state’s ongoing depopulation effort to reduce the number of policies in the state-created Citizens and transfer them to the private insurance market.

This announcement brings the total number of policies approved for take-outs in 2015 to 488,405. In 2014, the total number of policies approved for take-outs was 1,109,644 and the final year-end number of policies removed from Citizens was 416,623. By statute, policyholders may choose to remain covered by Citizens during take-out offers; however, they may be at risk of higher assessments.

http://www.insurancejournal.com/news/southeast/2015/02/11/357164.htm

As Florida seeks to revive its private home insurance market after almost a decade without a hurricane, homeowners are pouring $6 billion a year in premiums into a new generation of small, in-state insurance companies with an unproven record of withstanding a major hurricane.

A consumer-oriented rating agency, Weiss Ratings, recently awarded the companies a median grade of C-minus, and even without a major storm to drive up claims, 11 of them have already failed in Florida since 2006, according to state records.

“This is an accident waiting to happen,” said Gavin Magor, senior financial analyst with Weiss, a national agency with a reputation for tough ratings based in Jupiter, Florida.

Responding to the Weiss ratings, Robert Hartwig, president of the Insurance Information Institute, a trade association, said all the companies meet state regulations, noting that other rating agencies gave higher grades.

“Things are moving in the right direction for Florida in attracting private capital. The risk has been diversified and there’s clearly an appetite for this new risk,” said Hartwig.

Almost 80 per cent of Florida’s insured residential and commercial property, valued at about $3 trillion, lies in coastal areas vulnerable to both wind damage and flooding, according to risk modeling experts.

State officials have encouraged the growth of the private market in recent years, seeking to downsize the overloaded state-run Citizens Property Insurance Co., which ballooned as it took on policies after the major companies withdrew.

The major insurers have stayed away from Florida, saying state regulators require rates that are too low to make the risk of doing business profitable.

Citizens remains the single largest carrier in the state, with 14.5 percent market share.

I think we all know that what we have here in Florida is not what we want, but it is all we have. Citizens is not a great place to be and the Private market provides better policies and coverage so we need these new smaller carriers. We need them because the big carriers like State Farm, All State, GEICO, Progressive, Traveler’s, Liberty Mutual, Nationwide and even USAA have all stopped writing new business here in Florida. I think the real question is why is this being allowed when they write business in other states? They should be told to write all lines of business at some price or leave the state!!! No one is willing to tell them this and stand up to them so this is what we have left to deal with. Lawmakers in Tallahassee do not want to do things that make waves because this will not get them re-elected!!!
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;

http://www.insurancejournal.com/news/southeast/2014/09/11/340172.htm

The parent company of one of Florida’s largest home insurers has entered into a non-binding deal to purchase another state-based insurer in a move that could affect 21,500 state policyholders.

HCI Group Inc. announced it will acquire Prepared Holdings LLC  and its subsidiary Prepared Insurance Co.

HCI Group is the parent company of the Tampa, Florida-based Homeowners Choice Property & Casualty Insurance Co.

The Tampa, Florida-based Prepared Insurance provides coverage to 21,500 policyholders, representing $48 million in annual premiums. The letter of intent sets the purchase price at $27 million less any monies owe under certain notes and other expenses.

The letter of intent also spells out other provisions of the deal, which have yet to be negotiated. Additionally, the deal is contingent on approval by the state’s Office of Insurance Regulation.

Homeowners Choice had 163,000 policyholders as of January 1, making it the seventh largest homeowners’ insurer in Florida.

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.

http://www.insurancejournal.com/news/southeast/2014/06/24/332778.htm