Citizens Property Insurance Corp. will post a net loss for 2016, its first loss in more than a decade, as water loss claims, assignment of benefit (AOB) abuse and litigation costs increasingly impact the company’s bottom line, according to a statement from the Florida state-run insurer. Read more from the Insurance Journal here
The Consumer Protection Coalition launched a radio and television ad campaign Monday to warn homeowners of how Assignment of Benefits abuse could cause insurance rates to skyrocket in Florida. Read more from Florida Politics here
The business community believes trial lawyers hold the upper hand in the Legislature for the first time in years. The business community is not happy about that. Read more from Florida Politics here
Despite warnings in February of looming downgrades, insurance ratings firm Demotech has decided not to reduce financial strength ratings of any Florida carriers below A. Read more from the Sun-Sentinel here
A state law that was originally intended to give individual policyholders special rights in disputes with their insurance companies is instead being used by some repair vendors and their lawyers to generate a self-serving windfall. The problem is serious and growing, and it’s driving insurance costs higher and higher. Read more from William Large, President of the [...]
Florida's assignment of benefits (AOB) crisis can be partly blamed on a small number of lawyers and service providers who have helped fuel the explosive growth in lawsuits brought against insurers in recent years, a new study shows. Read more from Insurance Insider here
A new House bill aims to reduce costly litigation against insurers by forcing benefits assignees to risk paying insurers’ attorneys fees if they lose. Read more from the Sun-Sentinel here
Hurricane season is still more than three months away, but a different kind of tempest is threatening Florida property insurers, their policyholders and the state’s economy. Read more from the Orlando Sentinel here