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Wonderful skyline of Miami at sunset. Credit: pisaphotography/Shutterstock.com The state’s Office of Insurance Regulation recently heard proposals by First Floridian Auto and Home Insurance Co., Kin Interinsurance Network and Florida Farm Bureau General Insurance Co. and Florida Farm Bureau Casualty Insurance Co. that would raise homeowners’ rates by more than 20%. (Credit: pisaphotography/Shutterstock.com)

Florida Gov. Ron DeSantis on Monday (May 16, 2022) expressed confidence that a special legislative session will help stabilize Florida’s property insurance system, but the troubled market is taking another blow as a group of companies is poised to cancel more than 68,000 policies.

AM Best commented that reforms are necessary to stabilize the state’s market.

“The good news is, on property insurance, I think we’re going to get really, really significant reforms,” DeSantis said during an appearance at Seminole State College of Florida.

DeSantis made the comments a week before the May 23 start of a special session that he called to address property insurance problems that have led to homeowners losing policies and facing huge rate hikes.

The comments also came three days after the state’s Office of Insurance Regulation approved an agreement that will lead to FedNat Insurance Co., Maison Insurance Co. and Monarch National Insurance Co. canceling 68,200 policies, with 45 days’ notice to policyholders. The three insurers are part of the same holding company.

The agreement, known as a consent order, said the early cancellation of policies is an “extraordinary statutory remedy reserved to address insurers which are or may be in hazardous financial condition without the cancellation of some or all of its policies.”

“After review of the information filed in support of this request, and considering all of the attendant facts and circumstances, the office finds that approval of the early cancellation plan filed by the companies is necessary to protect the best interests of its policyholders and the public,” the agreement said.

DeSantis did not provide details of changes he expects lawmakers to pass during the special session. But he indicated that lawmakers could try to curb litigation over insurance claims, an issue that insurers have long blamed for financial losses.

 

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