Media Briefing: Florida Property Insurance Markets: Economic and Financial Update
At a January 22 press briefing, Nancy Watkins, an actuary with Milliman Inc., said that the new law required insurers to file the first estimate of their proposed reductions by mid-March of 2007, but many insurers had received approval for substantial rate increases in late 2006. Watkins explained that these policyholders would not see the initial effect of the new law until late 2007 or when their policies were renewed. Robert Hartwig, president of the Insurance Information Institute, emphasized that Florida is particularly prone to hurricanes and that insurers’ losses can be huge when a storm hits. Hartwig noted that companies still have a $6.2 billion deficit from their Florida operations dating back to Hurricane Andrew in 1992.