INDIANAPOLIS, May 23, 2022 /PRNewswire/ — florida The Special Session on the Property Insurance Crisis is an opportunity for the Legislature to pass key 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 Murraysaid NAMIC Regional Vice President – Southeast.
Florida currently accounts for only 9% of real estate claims, but accounts for 79% of insurance lawsuits in the United States. 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 lead to 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 limit 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 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.
The National Association of Mutual Insurance Companies represents more than 1,500 member companies, including regional and local mutual insurance companies on America’s main streets and many of the nation’s largest national insurers. NAMIC member companies write $323 billion in annual premiums. Our members represent 67% of owners, 55% of automobiles and 32% of commercial insurance markets. Through our advocacy programs, we promote public policy solutions that benefit NAMIC member companies and the policyholders they serve and foster greater understanding and recognition of the unique alignment of interests between management and policyholders of mutual companies.
Contact: Cathy Imus[email protected], 317-319-5550
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SOURCE National Association of Mutual Insurance Companies