The new Best’s Special Report, titled, “The Florida Market: Bracing for the Next Big Event,” states that Florida’s strained insurance environment has been stoked by the commonly misguided use of AOBs, with contractors soliciting the transfer of claims rights from insureds and subsequently inflating repair costs (primarily water-related), all the while using the legal system to their advantage.
For insurers, the strain has led to an environment marked by significantly higher losses and loss adjustment expenses, depressed insurer operating performance, and adverse loss reserve development patterns, leading to the need for insurers to file considerable rate increases, which unfavorably affected insureds. A new reform law that took effect
Reinsurers are holding their ground with higher pricing for
To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=287141.
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Source: AM Best