NU Online News Service, Aug. 25, 2:23 p.m. EDT

The Florida Office of Insurance Regulation (OIR) has asked the state's commercial and residential property insurers to collect and submit sinkhole claims–a cost driver insurers have said is swallowing underwriting profits.

Companies are required to report data from claims filed between 2006 and 2010 to the OIR by Sept. 21, according to the order. Regulators hope to gain a better understanding of the types of claims filed, testing procedures to determine legitimate claims, cost of inspections, location of the claims, legal and public adjuster fees, and amount of structural losses, the OIR said.

Rising expenses from questionable sinkhole claims, including legal fees and costs for geological and engineering studies, have been identified by insurers and Insurance Commissioner Kevin McCarty as a reason many insurers have reported underwriting losses.

During the most recent legislative session the OIR identified sinkhole claims as one of a handful of non-catastrophe cost drivers that have been driving down companies' profits. The OIR said it has heard claim frequency for sinkholes has increased and that claims are being filed outside of what is known as "sinkhole alley"–Hernando and Pasco counties.

The industry chose to give up on measures by lawmakers to address the sinkhole claims issue in order to give this year's omnibus property insurance bill a better chance of passing. The bill was supported by legislators but vetoed by Gov. Charlie Crist.

Special Reports /

Florida Regulators Issue Sinkhole Data Call

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