United (UPC) says Florida to remain “very firm for the foreseeable future”

United (UPC) says Florida to remain “very firm for the foreseeable future”

Florida headquartered insurer United Insurance Holdings (UPC Insurance) has stated that it prepares for the Florida individual lines property insurance market staying “very firm for the foreseeable future”. The provider had actually recently discussed that the litigation issue and resulting loss inflation and amplification continues for Florida property owners insurance companies, with its data recommending that the issue continues to worsen in 2021.
In reporting its first-quarter results yesterday, the insurance company revealed additional strengthening of reserves due to lawsuits related loss amplification.
Dan Peed, CEO of UPC Insurance described, “Due to uncommon loss development patterns in February and March, at the end of the first quarter we did an analysis of our direct exposure to the speeding up lawsuits pattern in Florida. This resulted in a $30 million fortifying of both catastrophe and non-catastrophe Prior Year Reserves for Florida individual lines direct exposures, driving a core after tax loss for the quarter of approximately $19.4 million.”
The legal is attempting to treat the scenario with changes to laws developed to attack Floridas insurance market issues and Peed is favorable on the effects this will have.
” We are very encouraged with last Fridays Florida legal modifications and believe they will alleviate the speeding up litigation trends, although it is prematurely to measure the improvement,” he stated.
The present state of the Florida insurance market suggests more firming is ahead, Peed believes, which suggests reinsurance rates will likewise stay firm, especially for those business that have actually experienced more loss creep from prior years and the biggest results of litigation.
Peed commented, “The property catastrophe market stays firm, particularly the Florida individual lines market which is expected to remain extremely firm for the foreseeable future.”
Likewise read:
— “Significant boost” in litigated Florida claims in Q1: United (UPC).
— Access to capital type in “dysfunctional” Florida insurance coverage market.
— Florida Citizens growth recommends takeout opportunity returning.

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