Worker’s comp


Please call  Lee from  USAsurance  & Calle Financial. 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.

At WeInsure, since we carry National General, we will soon also be able to sell Allstate policies!!!!!

U.S. Insurer Allstate Corp. said on Tuesday it will buy National General Holdings Corp. for about $4 billion in cash, scaling up its auto insurance business at a time when the coronavirus has crushed traffic on roads and reduced claims.

National General’s shareholders will receive $32 per share in cash and closing dividends of $2.50 per share for each share held. This would imply a total deal value of $3.92 billion and a premium of about 69% to National General’s Tuesday close, Reuters calculations showed.

Please enjoy the full article below;

https://www.insurancejournal.com/news/national/2020/07/08/574808.htm#

Please call  Lee from  USAsurance  & Calle Financial. 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.

Within the past few months, experts in all industries have analyzed the ways the coronavirus pandemic will affect their business environments. Insurance is no different.

As the pandemic’s impact on the insurance market gradually unravels, experts can turn to various indicators to determine how much the industry has been affected thus far.

Consider USI Insurance Services’ recently released “Q2-2020 Commercial Property & Casualty Insurance Market Outlook Report,” which highlights key industry trends amidst ongoing COVID-19 challenges.

“While it is too soon to determine the full impact of COVID-19 on the property & casualty insurance industry, markets are facing unique and interrelated challenges that industry insiders feel will continue through 2020 and well into 2021,” Robert Meyers, senior vice president, property & casualty leader at USI, said in the report. ”In fact, as rate increases, capacity reductions, and other negative trends continue to harden the market, the industry faces a number of challenges and uncertainties resulting from the ongoing COVID-19 pandemic. The property, umbrella/excess liability, casualty, and directors & officers (D&O) liability markets are currently dealing with the most significant issues.”

Among USI’s findings is the reveal that all segments of the property sector are experiencing higher rates, capacity restrictions/limitations, and other challenges resulting from excessive underwriting submissions, virus claims and lawsuits, and more.

Please enjoy the full article below;

https://www.propertycasualty360.com/2020/07/06/pc-insurance-market-outlook-q2-2020/?ref=insurancedailynews

Please call  Lee from  USAsurance  & Calle Financial. 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.

Florida’s state-run Citizens Property Insurance Corp. has joined a chorus of insurance companies accusing the Strems Law Firm of lawsuit abuse. Citizens says it has lost millions of dollars due to an alleged scheme of “sham” claims by the law firm, a public adjusting company and restoration company.

Citizens also alleges a “pattern of racketeering activity in violation of [the Racketeer Influenced and Corrupt Organizations Act] RICO.”

The allegations came in a civil complaint filed against Fort Lauderdale-based The Strems Law Firm; attorney Scot Strems; public adjuster Guillermo Saavedra and his public adjusting firm Contender Claims Consultants (CCC) of South Miami; and All Insurance Restoration Services (AIRS) of Miami, its president Cesar I. Guerrero, and its operations manager Derek Parsons.

“This lawsuit is about what we contend are concerted actions by the defendants to abuse the claims process for their own gain, and to the detriment of both Citizens and our policyholders,” Citizens Spokesperson Michael Peltier told Insurance Journal. “These abuses have made it virtually impossible for Citizens to handle claims efficiently and effectively. We believe we had no choice but to file this suit to address the costs of these abuses that are shouldered by all Citizens policyholders through higher premiums.”

Citizens filed the complaint in the Second Judicial Circuit Court for Leon County, Fla., on June 16. The 26-page document details Citizens’ allegations of how Strems, his firm, CCC and AIRS acted individually and in concert to defraud the insurer into paying for “sham first-party property insurance claims.”

Representatives for Strems, CCC and AIRS did not return Insurance Journal’s request for comment on Citizens’ allegations.

Please enjoy the full article below

https://www.insurancejournal.com/news/southeast/2020/06/22/572946.htm

Please call  Lee from  USAsurance  & Calle Financial. 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.

Most Fla. property owners will likely pay more when their policies renew, as insurers pass along increasing costs of coverage they need to pay claims after a disaster.

FORT LAUDERDALE, Fla. – Florida homeowners, already paying nearly the highest home insurance rates in the nation, should get ready for more sticker shock if and when their policies next renew.

Premiums for most Florida property owners are poised to jump again – sharply – as insurers pass along skyrocketing costs of coverage they need to pay claims after a catastrophic hurricane or other weather event.

That coverage is called reinsurance. It’s insurance that insurers must buy to prevent them from going broke – and to make sure you get paid – after a disaster.

By the June 1 start of every year’s hurricane season, insurers negotiate new reinsurance contracts for the upcoming year. Global capital firms provide the coverage, financed by investors who hope their outlay brings them a higher percentage of profit than if they had left the money in stocks, bonds or other investments.

This year, reinsurance prices increased 20% to 30% in Florida, and averaged 26.1% for companies that cover the most vulnerable catastrophe zones in the U.S., according to a report from artemis.bm, a reinsurance-focused news website.

The increases are the steepest in Florida in more than a decade and are similar to increases that drove up rates for policyholders after the 2005 hurricane season, the report stated, adding that companies hit hardest by claims and lawsuits in recent years faced increases of more than 45%.

Big hikes coming for policyholders

Industry experts say the increases soon will trickle down to Florida property owners who already pay $3,643 on average a year to insure their homes. That’s nearly $1,338 more than the national average

Please enjoy the full article below;

https://www.floridarealtors.org/news-media/news-articles/2020/06/insurance-firms-ready-charge-more-money-storm-season

Please call  Lee from  USAsurance  & Calle Financial. 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.

Retroactive business interruption measures could bankrupt US insurers in two months

Global pandemics like COVID-19 have been deemed uninsurable by private insurers. The sheer size and unpredictability of pandemic events makes them nigh on impossible for the industry to apply a standard underwriting practice to. For that reason, most standard insurance contracts around the world include clear policy wording that excludes coverage for pandemic and communicable diseases.

Despite common virus and bacteria exclusions, a significant number of lawsuits and class actions have been filed against US insurers for denying business interruption claims resulting from coronavirus-related losses. The industry has taken a united stance in that they cannot pay claims on insurance policies for which they collected no premiums due to the virus and bacteria exclusions, but that has not stopped some policymakers from suggesting retroactive measures that would essentially force insurers to rewrite contracts and pay out business interruption losses.

The suggestion of retroactive measures has caused major concern in the industry, with executives like Chubb CEO Evan Greenberg suggesting it would “bankrupt the industry”.

Please enjoy the full article below:

https://www.insurancebusinessmag.com/us/news/breaking-news/retroactive-business-interruption-measures-could-bankrupt-us-insurers-in-two-months-225240.aspx?ref=insurancedailynews

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

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

Although the 2019 hurricane season did not have a significant impact on Florida, loss creep from prior storms continues to weigh on reinsurers, leading to a likely rise in rates for the upcoming June renewal period. As noted in AM Best’s The Florida Market: Bracing for the Next Big Event (June 28, 2019), the reinsurance market for Florida property underwriters saw an initial round of hardening during the June 2019 renewal season.

The reported loss creep has in part been influenced by social inflation in the Florida market, resulting in adverse development of prior year loss reserves stemming from an increase in loss frequency and severity. Despite the lack of hurricanes making landfall last fall, companies—particularly the smaller, Florida-dominant property writers with questionable balance sheet strength—remain more susceptible to prevailing market conditions, such as hardening reinsurance pricing and adverse claims trends. Based on market surveillance, reinsurance rates are likely to increase by 15%-20% for the June renewal period; companies that depend highly on reinsurance may be most impacted

Because of inherent hurricane risk, Florida property writers spend a considerable amount on reinsurance, given the need for prudent catastrophe reinsurance programs. As we stated in our June 2019 report, a number of challenging issues in Florida have made it necessary for carriers to remain nimble in strategy and proactively manage several forms of risk, with rising reinsurance costs potentially being the next event on the horizon. Rising reinsurance costs have the potential to pressure some of the more thinly capitalized Florida-specific companies in the market.

Exhibit1 lists the companies that have a direct Florida property book of at least $1 million, for which the Florida book constitutes at least 50% of the carrier’s total book, and unaffiliated ceded premium written constitutes at least 50% of gross premium written. (Unaffiliated ceded premium provides a better picture of private market participation.)

Reinsurance dependence, as measured by unaffiliated ceded written premium to policyholder’s surplus, exceeds 100% for all but four of the 25 companies listed, indicating elevated sensitivity to the changing reinsurance environment.

Companies with high reinsurance dependence face difficult choices. Higher reinsurance rates may pressure earnings if insurers decide to continue writing business at existing levels. Those opting to retain more business may see declines in capitalization in the event of catastrophic storms; these companies may be forced to write less business to maintain existing capital.

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

Please enjoy the full link below.

https://myemail.constantcontact.com/NAIFA-Florida-Session-Dispatch-Week-3.html?soid=1118019259448&aid=52_cvHub5XU

 

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

The Florida Office of Insurance Regulation (OIR) is appealing a court order invalidating its approved 14.5 rate increase on Florida workers’ compensation rates that was set to take effect Dec. 1

Based on the OIR filing its Notice of Appeal, the rate halt is on hold until the case is reviewed by the First District Court of Appeals.

The challenge to the rate increase was brought by James Fee, a Miami attorney who represents injured workers. Fee claimed, and Leon County Circuit Court Judge Karen Gievers agreed, that NCCI was in violation of Florida’s Sunshine Laws in holding “multiple, non-public, secret meetings” internally and with the OIR over the rates.

http://www.insurancejournal.com/news/southeast/2016/11/29/433411.htm

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

The Florida Office of Insurance Regulation (OIR) has given contingent approval for an overall statewide workers’ compensation rate increase of 14.5 percent to take effect Dec. 1, 2016. The rate increase is in response to two recent Supreme Court rulings undoing reforms passed in 2003 and rocking the state’s workers’ compensation system.

In the Sept. 27 order, OIR disapproved the National Council on Compensation Insurance’s (NCCI) filing for a 19.6 percent increase, on behalf of insurers, saying that much of an increase on new, renewal and outstanding policies was not justified.

Instead, OIR said NCCI could submit a revised filing for a 14.5 percent increase.

“After a thorough review of the workers’ compensation insurance rate filing submitted by the [NCCI] and careful consideration of hundreds of public comments and testimony received from interested stakeholders, [OIR] has issued an order that gives contingent approval to an overall combined average statewide rate increase of 14.5 percent versus the requested 19.6 percent,” OIR said in its statement.

OIR said approval of the revised rate increase is contingent on NCCI amending the filing to include the recommended changes stipulated within the order. The amended rate filing must be filed with OIR for review and approval no later than Oct. 4, 2016. NCCI said it would review the order and respond “in a timely manner.”

 

http://www.insurancejournal.com/news/southeast/2016/09/27/427642.htm

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