Florida Focused Insurers Close Claims Consistently despite Storms of 2016, 2017, and 2018

COLUMBUS, Ohio, Nov. 20, 2019 /PRNewswire/ -- Despite the major storms of 2016, 2017, and 2018, a study by Demotech, Inc. indicates that Florida focused property insurers are closing reported claims at a pace consistent with prior years.  "Although we recognize that consumers, regulators, reinsurers, and others have expressed a level of frustration with outstanding claim counts, a review of the publicly available financial information indicated that the closure rates for accident years 2016, 2017, and 2018 are consistent with prior years despite the additional claims activity caused by Hurricanes Matthew, Irma, and Michael," says Joe Petrelli, President, Demotech, Inc.

The study, using data from S&P Global, compiled information from the annual statements of 91 insurance companies writing 80% or more of their Homeowners direct premium written in Florida.  Using Schedule P – Part 5A – Homeowners Claim Counts, Demotech calculated claim closure rates based upon the claim count information reported to the National Association of Insurance Commissioners. "Despite named storms making landfall in Florida in 2016, 2017, and 2018, the closure rates for all accident years 2009 through 2018 were fairly steady," noted Rachel Wilkins, Analyst, Demotech, Inc. The percentage of claims outstanding after 12 months was 12.8% for 2016, 14.0% for 2017, and 15.5% for 2018. Comparably, the average percentage of outstanding claims at 12 months for years 2009 through 2018 was 14.3%. The analysis can be found here.

"Seamless processing of claims is impossible. Consumers who submit claims have had their lives disrupted.  If they could return to their prior status within seconds, the trauma and frustration would still be tragic.  As the need to recognize unique circumstances and nuances serve to protract the investigatory and valuation process, the frustration grows.  Similarly, it is often difficult to separate a consumer's frustration with the vendor providing repairs from the frustration with the claim settlement process," says Petrelli.  "The consistency of claim closure rates over a ten year period implies that carriers are consistently resolving open claims."

About Demotech, Inc.

Demotech, Inc. is a financial analysis firm specializing in evaluating the financial stability of regional and specialty insurers.  Since 1985, Demotech has served the insurance industry by assigning accurate, reliable and proven Financial Stability Ratings^® (FSRs) for Property & Casualty insurers and Title underwriters.  FSRs are a leading indicator of financial stability, providing an objective baseline of the future solvency of an insurer.  Demotech's philosophy is to review and evaluate insurers based on their area of focus and execution of their business model rather than solely on financial size.  Visit www.demotech.com for more information.

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SOURCE Demotech, Inc.