Florida Focused Insurers Close Claims Consistently despite Storms of 2016, 2017, and 2018
Columbus, Ohio, November 20, 2019: Despite the major storms of 2016, 2017, and 2018, a study by Demotech, Inc. indicates that Florida focused property insurers are closing reported claims at a pace consistent with prior years. “Although we recognize that consumers, regulators, reinsurers, and others have expressed a level of frustration with outstanding claim counts, a review of the publicly available financial information indicated that the closure rates for accident years 2016, 2017, and 2018 are consistent with prior years despite the additional claims activity caused by Hurricanes Matthew, Irma, and Michael,” says Joe Petrelli, President, Demotech, Inc.
The study, using data from S&P Global, compiled information from the annual statements of 91 insurance companies writing 80% or more of their Homeowners direct premium written 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. “Despite named storms making landfall in Florida in 2016, 2017, and 2018, the closure rates for all accident years 2009 through 2018 were fairly steady,” noted Rachel Wilkins, Analyst, Demotech, Inc. The percentage of claims outstanding after 12 months was 12.8% for 2016, 14.0% for 2017, and 15.5% for 2018. Comparably, the average percentage of outstanding claims at 12 months for years 2009 through 2018 was 14.3%. The full article can be found here.