The View at December 31, 2019 – Florida Focused Insurers Closing Claims Associated with the Storms of 2016, 2017, and 2018

Columbus, Ohio, April 20, 2020: In November 2019, Demotech released an analysis of claim closure rates that included the impact of the storms of 2016, 2017, and 2018.  Demotech’s analysis indicated that Florida focused residential property insurers were closing reported claims at a pace consistent with prior years at that same point in time, i.e., at the end of the calendar year when the storm occurred.  Demotech’s current update re-visits the situation to calculate cumulative claim closure rates through year-end 2019.

The analysis, using data from S&P Global, was compiled information from the annual statements of the identical 91 insurers in the initial analysis.  These 91 carriers wrote 80 percent or more of their Homeowners direct premium in Florida.  Using Schedule P – Part 5A – Homeowners Claim Counts, Demotech calculated claim closure rates based upon the claim count information reported to the National Association of Insurance Commissioners.  

Compiled under the direction of Douglas Powell, Senior Financial Analyst, the results indicate that despite the increased volume of claims due to the storms of 2016, 2017 and 2018, claim closure rates for those years remain at or below historical levels of claim closure.  “The claim closure rate for 2016, 2017 and 2018 remains consistent with accident years 2009 through 2018,” noted Powell.  The percentage of claims outstanding after 24 months was 2.9 percent for 2016, 4.2 percent for 2017, and 3.7 percent for 2018.  These open claim rates are below the high of 4.6 percent of reported claims being open, 2009 through 2018.

“Although the legislative reforms enacted in 2019 resulted in a spurt of claims getting in under the wire, the consistency of claim closure rates over an extended period indicates that carriers are working diligently to resolve open claims,” says Joseph Petrelli, President, Demotech.


About Demotech, Inc.

Demotech, Inc. is a financial analysis firm specializing in evaluating the financial stability of regional and specialty insurers.  Since 1985, Demotech has served the insurance industry by assigning accurate, reliable, and proven Financial Stability Ratings® (FSRs) for Property & Casualty insurers and Title underwriters.  FSRs are a leading indicator of financial stability, providing an objective baseline of the future solvency of an insurer.  Demotech’s philosophy is to review and evaluate insurers based on their area of focus and execution of their business model rather than solely on financial size.  Visit for more information.