Here we are, approaching yet another hurricane season even though it feels like the last one just left us. The news media is already talking about the type of season we can expect and what we should be doing now to prepare. I know many of you have revamped your hurricane catastrophe plans and will be implementing new-and-improved ways to assist your clients in the coming year.
The market has made some drastic changes in the last few weeks and I am sure by the time you read this, there will be many more. Many domestic carriers are raising their rates to what would have been incomprehensible numbers six months ago. However, today we are just happy to have capacity at any rate. There are many domestic carriers who now are limiting aggregates when they never have before, and in some cases, are already full for windstorm in the lower counties. Lloyds? Well, that is anyone's guess.
There are many syndicated companies who have pulled out completely from Florida, some who have put their rates up so high that you don't think you could ever sell them, and then others who really just cannot make up their minds. I feel that there will be aggregate to be had in Lloyds and we will be able to place property with wind with them, but the question is at what price, what deductibles, and will the consumer pay the price?
Many of the carriers who were writing wind in Florida took very hard hits in the last two seasons. Fortunately, most will survive but some will not. We still do not know which ones will not make it as losses still are being tallied. Citizens' assessment fee also is adding to the extra expenses that our insureds have to pay. We are hoping that legislation will help to correct the mistakes in the past and fix Citizens' problems. I feel there is a place for Citizens; they just need to figure out where it should be and make sure they make the rates actuarially sound so this does not happen again.
The only advice I can give to all of you is to prepare for the worst and hope for the best. There will be markets to write property. The prices will be high and the deductibles will be elevated. Try and educate the insureds as to the reasons why this happens and hopefully we will have a quiet year and the market will make a natural correction. Good luck and be safe.
Steven M. Finver is president of the Continental Agency of Florida and president-elect of the Florida Surplus Lines Association.
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