Indianapolis, Indiana, May 24 (TNStalk) — The National Association of Mutual Insurance Companies issued the following statement on May 23, 2022by the Southeast Regional Vice President Caitlin Murray:
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florida special session on the property insurance crisis is an opportunity for the Legislature to pass critical reforms to address some of the most pressing issues that have led to the current crisis in the property insurance market State, the National Association of Mutual Insurance Companies said today.
“The package, while not perfect, makes much-needed progress in substantially reforming the litigation environment that has allowed trial abuses to be rampant in Florida in recent years and plunged the market into a slow-motion crash,” said Caitlin MurrayNAMIC Regional Vice President – Southeast said.
“Florida currently accounts for only 9% of property claims, but accounts for 79% of insurance lawsuits in the WE This bill seeks to correct that by reversing attorney fee multipliers and one-way attorney fee awards under an assignment of benefits, thereby removing the incentive for attorneys to pushing fraudulent claims. The bill also reforms florida problematic bad faith laws that have enriched a select few lawyers at great cost to consumers.
“As the bill currently stands, we believe it will improve the climate for property insurance and leave Florida insured in a better position than they are today, especially in the reform florida violation of bad faith and attorney’s fee laws that encourage unnecessary litigation and drive up costs,” Murray said.
“NAMIC anticipates that this session will result in fewer lawsuits and, as these costs come down, insurers will be encouraged to do business in a more stable litigation environment in Florida.”
“However, NAMIC remains concerned about certain claims processing and underwriting restrictions in the bill that restrict the ability of insurers to set appropriate rates that reflect risk, particularly in deciding which properties and roofs to insure. Property insurance options continue to shrink for Floridians as insurers have lost more than $1 billion in each of the last two years in the state. Several insurers have gone insolvent and gone out of business, further compounding the problem for those left behind and their policyholders.
“While not all market issues were addressed in the bill, we commend the Governor’s office and the sponsors of the bill for taking this bold step to improve the insurance market by Florida“, continued Murray.