The Florida Insurance Roundup from Lisa Miller & Associates

• Episode 56: Episode 56 – Florida Property Insurance: Facts vs. Fear

  A sensational newspaper article alleging bad deeds by Florida insurance companies is prompting the Florida House of Representatives to look into the relationship between companies and their Managing General Agents (MGAs) and affiliated companies.  The Tampa Bay Times reported the companies diverted billions of dollars to affiliates while claiming to lose money from hurricanes, based on the newspaper’s reading of a regulator’s draft report.Former Florida Deputy Insurance Commissioner Lisa Miller reveals the inadequacies of the article and its misleading and incomplete portrayal of the market and regulation.  She’s joined by a veteran Florida insurance agent who explains how MGAs and affiliates function, the financial dynamics of the insurance market, and the consumer safeguards built into the system. Show Notes  (For full Show Notes, visit https://lisamillerassociates.com/episode-56-florida-property-insurance-facts-vs-fear/ ) Allen McGinniss is a licensed Florida insurance agent and the principal of the McGinniss Himmel Insurance Agency, based in Tallahassee, Florida.  He began his insurance career 20 years ago as a State Farm agent before transitioning to an independent agent and co-founding his agency in 2015.  He explained what Managing General Agents (MGAs) are and the crucial role in the insurance industry by performing essential administrative tasks for insurance companies.  These tasks include: Underwriting: Assessing and evaluating risks to determine appropriate coverage and premiums. Claims Management: Handling the process of claims from filing to settlement. Policy Issuance: Managing the issuance and renewal of insurance policies. Why Are MGAs Important?MGAs help streamline operations by providing specialized knowledge and services that insurance companies may not handle internally.  McGinniss said they can either operate within an insurance company or function independently.  This flexibility allows insurance companies to: Respond Quickly to Market Changes: MGAs enable companies to adapt to evolving market conditions efficiently. Manage Claims Effectively: By leveraging the expertise of MGAs, insurance companies can ensure that claims are processed promptly and fairly. The Tampa Bay Times ArticleThe Tampa Bay Times published an article on February 22, 2025 titled Florida insurance companies steered money to investors while claiming losses, study says.  Its reporting was based on a draft of a 2022 consultant’s study for the Florida Office of Insurance Regulation (OIR) for the time period of 2017-2019.  According to the article, “While Florida insurers claimed to be losing money in the wake of hurricanes Irma and Michael, their parent companies and affiliates were making billions of dollars.”  It reported that the previously unreleased study’s summary “reveals that as the industry was ailing and companies were losing money, executives distributed $680 million in dividends to shareholders while diverting billions more to affiliate companies,” which included MGAs.  McGinniss argued that the...  (For full Show Notes, visit https://lisamillerassociates.com/episode-56-florida-property-insurance-facts-vs-fear/ ) 

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• Episode 55: Episode 55 – Litigation Data Standard

  One of the elements credited in the evolving success of Florida’s recent property insurance reforms is data collection and reporting.  Property insurance companies are required to provide regulators with specific data on litigated claims.  The number of lawsuits decreased significantly in 2024 as a result and with it, upward pressure on homeowners insurance rates. Now there’s a push to implement a litigation data standard nationwide.  Former Florida Deputy Insurance Commissioner Lisa Miller sits down with CaseGlide CEO Wesley Todd who is behind the move, citing increasing nuclear verdicts and new challenges in other lines impacting insurance availability and affordability. Show Notes The podcast delves into the transformative changes in Florida's homeowners insurance litigation landscape, driven by legislative reforms and the critical role of data transparency.  Wesley Todd said he formed Tampa-based CaseGlide in 2013 to bring greater transparency to insurance litigation through data analytics and “level the scales of justice.  But what was missing was the ability to see what was happening, the ability to do something about it.”  More than ten years later, he is continuing to emphasize the importance of data transparency in understanding litigation trends and improving the insurance industry's efficiency.Todd told host Miller that the insurance industry today faces “an inflection point.”  Nuclear verdicts, social inflation, and judicial activism have driven unprecedented litigation costs, destabilizing insurance companies’ ability to fulfill their fiduciary obligations.  Meanwhile, plaintiff attorneys have transformed their practices with analytics, funding, and transparency, positioning themselves to maximize litigation outcomes “at the expense of insurers,” he said."I'm really sort of just giving the industry a heads-up that this is where we're headed if we're lucky, right?  I mean otherwise it could be too late.  It could be that insurance becomes unaffordable and unavailable in major lines like casualty, professional liability, just like we see in commercial auto, just like we saw temporarily in Florida," Todd said.Todd discussed his recent policy paper that advocates for a data-driven approach to decision-making and highlights the need for standardized litigation data to support industry reforms and better serve consumers.  He is urging insurance companies across the U.S. to implement a “Litigation Data Standard.”  He describes it as a governance framework for collecting, auditing, and analyzing litigation data.  This “institutional reform” would help realign insurance companies with their duties of compliance, reasonableness, and transparency, enabling them to meet regulatory expectations, counter judicial activism, and deliver legal services of comparable quality to their opponents in the plaintiff bar.Todd’s concept is based on Florida’s litigation challenges.  In 2021, Florida accounted for 7% of the nation’s homeowners insurance claims, yet 76% of the nation’s homeowners insurance lawsuits.  The legislature passed a series of successive reforms from 2019 through 2023, including the elimination of one-way attorney fees for plaintiff attorneys to help fix the problem.  (For full Show Notes, visit https://lisamillerassociates.com/litigation-data-standard/) 

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• Episode 54: Episode 54 – The Truth Behind the 50% Claims Denial

  Amid accusations that Florida’s property insurance companies, including state-backed Citizens Insurance, are deliberately paying only half their claims and “in a state of collapse,” comes new insight and fresh data that debunk the charges.  The man behind the allegations is Martin Weiss of Weiss Ratings, who’s now the subject of an investigation by state insurance regulators.Former Florida Deputy Insurance Commissioner Lisa Miller shares the new push-back from Citizens’ President & CEO on these accusations and sits down with the head of a large private insurance company who shares new data showing why these charges are inaccurate and unfair in what is a tightly-regulated marketplace. Show Notes (For full Show Notes, visit https://lisamillerassociates.com/episode-54-the-truth-behind-the-50-claims-denial/  ) The news stories emerged mere weeks after two devastating hurricanes – Helene and Milton – struck Florida, creating $5.3 billion in estimated insured losses in Florida as of late November 2024.  Host Miller dives deep into the controversies and complexities surrounding the state-created Citizens Property Insurance Corporation and the broader Florida property insurance market on its claims handling and claims payment rates.  "The innuendo that's going around in the media space is that there is a suspicion that Citizens is trying to cheat its customers, and now forces are trying to extend that innuendo to Florida's private property insurance market companies,” said Miller.  “In my opinion, that's just plain dishonest and unfair."The program features soundbites from Weiss, Citizens Property Insurance President & CEO Tim Cerio, and a studio interview with Locke Burt, CEO and Chairman of Security First Insurance Company.  Burt served in the Florida Senate for 12 years, where he helped write the laws that created Citizens and the Florida Hurricane Catastrophe Fund.Weiss, in various November media reports, said that he’d reviewed Citizens Property Insurance 2023 annual financial statement and concluded that Citizens didn’t pay 50.4% of its 2023 claims.  He said that was worse than any private insurance company’s no-pay rate.  Weiss declined an invitation to appear on the podcast.Burt and Cerio defended Citizens and the broader Florida insurance market against Weiss’ accusations, noting there are legitimate reasons claims are closed without payment.  It's not always about denial.  The reasons include:  Claims that fall below the policyholder's deductible. Duplicate claims. Claims related to flood damage, which are not covered by standard homeowners' policies. Weiss, in his criticism of Citizens, was quoted in the media as saying “One factor that we believe is probably playing a role is a deliberate strategy to reduce their liabilities for whatever reason.”Cerio shot back at the December 4, 2024 Citizens Board of Governors meeting.  “It's critical to just point out that, we are the state created, not for profit, insurer of last resort.  We have no financial incentive to not play claims.  Zero,” he said.(For full Show Notes, visit https://lisamillerassociates.com/episode-54-the-truth-behind-the-50-claims-denial/ )Image credit:  danielfela/Shutterstock

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• Episode 53: Episode 53 – Fortified Homes

  Why were some homes in Hurricanes Helene and Milton heavily damaged while others sustained little or no damage?  Much of the answer lies with the building materials and techniques used in their construction. Former Florida Deputy Insurance Commissioner Lisa Miller talks with a building science researcher, a building products manufacturer, and a developer whose homes survived unscathed from the hurricanes about how resilient construction can save money and insurance costs for both new and existing homes. Show Notes (For full Show Notes, visit https://lisamillerassociates.com/episode-53-fortified-homes/)  Host Lisa Miller opened the discussion by highlighting the devastation caused by recent Hurricanes Helene and Milton, particularly in Florida.  She emphasized the urgent need for homeowners to prepare their properties to withstand such disasters.  “Everywhere I go in Florida, I see homes built with plywood and two-by-fours, and I affectionately say that these production homes are built with sticks.  I don’t see how they withstand 150 mph winds,” said Miller, who is a disaster insurance and recovery expert.  The focus of the episode is on using innovative building products and techniques to enhance the resilience of homes.Fred Malik, Managing Director of the Fortified Program at the Insurance Institute for Business and Home Safety (IBHS), shared his expertise on building techniques and materials designed to minimize damage from natural disasters.  He stressed the importance of rigorous building standards and inspections, noting that "you get what you inspect, not what you expect."  Malik explained that homes built to the Fortified standard undergo thorough third-party inspections, ensuring that critical details are not overlooked.  This certification process provides consumers with a way to differentiate between homes that may appear similar but have vastly different levels of resilience against severe weather.Marshall Gobuty, Managing Director at Pearl Homes Developments, shares his firsthand experience with building resilient homes. He discusses his development, Hunter's Point in Cortez, Florida, which successfully withstood Hurricane Milton without any damage.  Gobuty attributes this success to his innovative building practices, which include using a combination of block and poured concrete for foundations, as well as advanced insulation techniques that enhance the structural integrity of the homes.Scott Lidberg, CEO of NEXGEN Building Products, introduced his company's innovative magnesium oxide-based building materials.  He explained how these products can replace traditional materials like plywood and gypsum, offering superior resistance to impact, moisture, and fire.(For full Show Notes, visit https://lisamillerassociates.com/episode-53-fortified-homes/) 

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• Episode 52: Episode 52 – Agent Roundtable

  What’s going on with property insurance in Florida?  Specifically rates, coverage, condominiums, automobile insurance, telematics, flood insurance, and the reinsurance costs that carriers pass along to consumers.  Former Florida Deputy Insurance Commissioner Lisa Miller gets to the heart of the issues with three experienced insurance agents in South, Central, and North Florida who share their insights and suggestions on improving Florida’s challenging property insurance market. Show Notes Host Lisa Miller and guests discussed the high premiums affecting homeowners and auto insurance, driven by catastrophic weather, inflation, litigation, and reinsurance costs.  Positive trends such as rate decreases and more flexible coverage options are highlighted.  The conversation also covered the critical need for flood insurance and the role of the news media in educating the public about insurance complexities and how agents can help the media do so.  The episode underscores the importance of transparency and proactive communication in the industry.Miller’s guests each brought unique perspectives from different regions of Florida: Jay Wolfberg, President of We Insure, headquartered in Sunrise.  Wolfberg has over a decade of experience in commercial and residential property insurance.  He discusses positive trends in the market, including rate decreases and more creative coverage options. Anna Regina Myrrha, Agency Principal and Broker at American Insurance Pointe (AIP) in Orlando.  Myrrha shares insights on the stabilization of rates and the importance of adapting coverage to meet clients' needs. Paul Lalonde, President of Insurance Wagon, a Jacksonville insurance agency.  Lalonde provides a perspective on the homeowners as well as the commercial insurance market and the challenges posed by recent legislation affecting condominium insurance. Overview of the Florida Insurance MarketHost Miller highlighted the current state of the Florida insurance market, where premiums for automobile, homeowners, and commercial insurance are at an all-time high.  She identified four main factors driving these rates: Catastrophic Weather: Florida's susceptibility to hurricanes and other severe weather events significantly impacts insurance costs. Inflation: Rising costs of goods and services contribute to higher insurance premiums. Litigation: Legal fees and settlements from lawsuits lead to increased insurance costs. Reinsurance Costs: The cost of reinsurance, which insurers purchase to protect themselves from large claims, is a significant factor in premium pricing, comprising upward of 40% of a homeowners insurance premium. Host Miller emphasized the uncertainty surrounding reinsurance costs, especially with the ongoing hurricane season, and the potential for higher rates if a significant hurricane occurs.Positive Trends in Homeowners InsuranceRate Decreases and StabilizationHost Miller highlighted a recent report from the Florida Office of Insurance Regulation that 12 companies have requested rate decreases, while 25 have sought to maintain their current rates. For example, American Integrity Insurance Company has announced a nearly 7% rate decrease for a significant number of policyholders...  (For full Show Notes, visit https://lisamillerassociates.com/episode-52-agent-roundtable/) 

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