Most Florida Insurers In Good Shape Despite Storms
By Michael Ha
NU Online News Service, Nov. 8, 4:09 p.m. EST? Despite an unprecedented hurricane season that battered large parts of Florida and Southeastern United States, most Florida-based carriers are surviving storm losses in a decent shape, with only one insurer going into receivership so far, according to the Florida Office of Insurance Regulation.[@@]
So far, American Superior Insurance Company, based in Plantation, Fla., is the only insurer to go into receivership in the Sunshine State in the wake of hurricane losses.
American Superior, which went into rehabilitation Sept. 29, has some 58,000 homeowners' policies in the state, and its hurricane-claims figure as of last Friday, Nov. 5, was 8,619, according to Bob Lotane, spokesman for Florida Office of Insurance Regulation.
Mr. Lotane also said his office is currently working to have North Pointe Casualty Insurance Company, based in Jacksonville, Fla., take over American Superior's 58,000 policies.
But for the overall Florida insurance market, Mr. Lotane said regulators are expecting most insurers to emerge from this hurricane season in a good shape.
Mr. Lotane explained that the state's insurance market, in the wake of Hurricane Andrew in 1992, had made adjustments to deal with severe hurricane losses.
"We had tailored the market to be able to handle catastrophes such as those we have seen this year," he said. "Now, granted, four hurricanes are unprecedented. We had planned on one huge event or a couple of Hurricane Charley-type events, and what we got was certainly in excess of that." But, Mr. Lotane added, "we had companies set their reserve levels and solvency requirements, so that they are able to handle catastrophic events that Florida is at risk for."
Mr. Lotane declined to say whether there are currently any Florida insurers under supervision, noting that such information is not public record?it only becomes public record when companies go into receivership?but he noted that he wouldn't be surprised if American Superior ends up being the only insurer to go into receivership from this year's hurricane losses.
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