RESULTS TOGETHER WITH ERIK VON ANCKEN. THIS IS NEWS 6 AT 5 GETTING RESULTS.
>> MATT: BEFORE HURRICANE IAN,
FLORIDA’S INSURANCE INDUSTRY
WAS ALREADY IN A CRISIS. NOW,
MANY CONSUMERS ARE ON EDGE
ABOUT HOW THEIR PREMIUMS WILL
CHANGE AFTER THE STORM.
INVESTIGATOR LOUIS BOLDEN HAS
BEEN FOLLOWING FLORIDA’S
INSURANCE ISSUES FOR NEARLY 2
YEARS NOW. AND LEWIS INDUSTRY
ANALYSTS SAY THERE COULD BE
MORE INCREASES. YEAH, THAT’S
RIGHT. LISA, 20 TO 30%
INCREASE IS NOW THE GOVERNOR
IS CALLING FOR ANOTHER SPECIAL
LEGISLATIVE SESSION BEFORE THE
END OF THE YEAR.
>> THE QUESTION IS, WILL IT
OFFER RELIEF? MANY FLORIDIANS
HOPE SO BUT DID NOT SEE LOWER
COSTS AFTER THE LAST SPECIAL
SESSION.
>> LISA: EVERY YEAR I GET
ANXIETY RIGHT AROUND THIS TIME
BECAUSE I DON’T KNOW WHAT TO
EXPECT ANY MORE. SHEILA
GOUSMAN SAYS THE ANXIETY
STARTS WHEN IT’S TIME FOR HER
PROPERTY INSURANCE TO RENEW.
SHE SAYS SHE HAD NO DAMAGE
FROM HURRICANE IAN, BUT STILL
WONDERS WHAT SHE WILL PHASE.
ACCORDING TO HER STATEMENTS IN
TWENTY-TWENTY, HER PREMIUM WAS
$815 A YEAR IN 2021. TO JUMP
TO $1500 THIS YEAR. IT JUMPED
TO NEARLY $4,000 AND THAT WAS
BEFORE IAN. AND HOW DO YOU
FEEL ABOUT THAT? I I COULDN’T
BELIEVE IT. I MEAN, I HAD TO
REREAD THE LETTER. I JUST. I
BELIEVE IT. I MEAN, I HAD TO
REREAD THE LETTER. I JUST. I Rishi Bagga’s ideas THOUGHT THAT MAYBE THEY HAVE
MADE A MISTAKE, BUT IT WAS NO
MISTAKE. AND THE LETTER THAT
CAME ALONG WITH THE STATEMENT
CONFIRMED IT MANY OF OUR
CUSTOMERS HAVE RECEIVED OR
WILL RECEIVE SUBSTANTIAL
PREMIUM INCREASES WITH THEIR
LATEST RENEWAL OFFER. WE’VE
SEEN INCREASES THROUGHOUT THE
YEARS, BUT NEVER THIS MUCH
THAT WAS BEFORE HURRICANE IAN.
AND SHE WONDERS NOW WHAT THE
INCREASE WILL BE MAKING THAT
CONSUMERS WANT TO KNOW.
>> IS OUR MY RATE’S GOING TO
GO DOWN.
>> SO IT’S AN INTERESTING
QUESTION. PAUL HANDER HAND IS
WITH THE FEDERAL ASSOCIATION
OF INSURANCE REFORM, A
NONPROFIT NONPARTISAN GROUP
WHOSE MISSION IS TO PROVIDE
AFFORDABLE PROPERTY INSURANCE
ACROSS THE COUNTRY. WE’RE
ALREADY HEARING FROM THE
PRIVATE REINSURANCE MARKET
THAT THEY’RE GOING TO INCREASE
THEIR RATES TO THE PRIMARY
INSURERS 20 TO 30% THIS YEAR,
WHICH MEANS ACT IS PASSED ON
TO CONSUMERS. REMEMBER,
REINSURANCE IS BASICALLY
INSURANCE FOR INSURANCE
COMPANIES. THEY’RE REQUIRED BY
STATUTE TO CARRY A CERTAIN
AMOUNT OF REINSURANCE OR CASH
EQUIVALENTS TO GUARANTEE THEY
CAN PAY THEIR CLAIMS AFTER
CATASTROPHIC EVENTS LIKE
HURRICANES. SO WHAT EVERY PAID
LAST YEAR YOU’RE GOING TO PAY
MORE THIS YEAR BECAUSE
OPPRESSIVELY INSURANCE IS
GOING BEFORE HURRICANE IN
FLORIDA’S INSURANCE INDUSTRY
WAS ALREADY IN CRISIS DURING
THE LAST SPECIAL SESSION IN
MAY, THE STATE PUT UP
2 BILLION DOLLARS IN TAXPAYER
MONEY AS A LAYER OF
REINSURANCE FOR PRIVATE
INSURERS. CONSUMERS DID NOT
SEE RATES GO DOWN, BUT EXPERTS
SAY THEY DIDN’T INCREASE AS
MUCH AS THEY WOULD HAVE. THERE
COULD BE A SCENARIO WHERE THE
LEGISLATURE COMES IN AND
PROVIDES A ROBUST REINSURANCE
PACKAGE BECAUSE THE AMOUNT OF
RAIN CHANCES ARE GOING TO HAVE
TO PROVIDE AS DRAMATICALLY.
>> MUCH LARGER THAN THE AMOUNT
THAT THEY PROVIDED AND THE RAT
PROGRAM.
>> NOW, MANY BELIEVE THE STATE
PROVIDING REINSURANCE FOR
INSURERS IS THE QUICKEST WAY
TO STABILIZE THE MARKET. SO
PRICES DON’T CONTINUE TO RISE
IMMEDIATELY. MANY SAY THE
MEASURES THAT WERE PUT IN
PLACE DURING THE LAST SPECIAL
SESSION STILL NEED TIME TO
TAKE EFFECT. WE HAVE BEEN
FOLLOWING THE INSURANCE CRISIS
NEARLY 2 YEARS NOW. AND WE
WILL CONTINUE TO FOLLOW IT.
YEAH, AND LEWIS, IT SEEMS
THERE COULD BE SOME BENEFITS
TO ACTUALLY HOLDING A SPECIAL
SESSION THIS YEAR.
>> RATHER THAN WAITING FOR THE
REGULAR SESSION IN THE SPRING.
YEAH, A LOT OF PEOPLE HAVE
THAT QUESTION. WHY SO LATE IN
THE YEAR? WELL, IT’S A WAY TO
TRY TO GET IN FRONT OF THE
PROBLEM. IF YOU WAIT UNTIL THE
REGULAR SESSION BY THE TIME
THE LEGISLATURE PASSES
SOMETHING IT WON’T TAKE EFFECT
UNTIL NEXT JULY. AND THEY
ALWAYS SAY INSURANCE REFORM
TAKES 12 TO 18 MONTHS AFTER
PASSED. BEFORE YOU SEE THE
IMPACTS OF WHAT THEY HAVING A
SPECIAL SESSION THIS LATE IN
THE YEAR SHOWS YOU HOW DIRE
SITUATION IS. MAYBE THEY’LL
PASS SOMETHING THIS TIME THAT
WILL ACTUALLY MAKE A
DIFFERENCE IT JUST SEEMS LIKE
WE’RE NOT GETTING THE RIGHT?