It hasn’t been made official by the governor’s workplace, however Florida legislative leaders have set a date for a second particular session to sort out property insurance coverage points – Dec. 12 by way of Dec. 16.
Memos from newly sworn Senate and Home management present the date coincides with already-planned plenary and organizational conferences for the 2023 common session of the Legislature, which begins in March. A proper proclamation on the particular session is anticipated this week.
The memos didn’t handle what reforms could also be on the agenda, however insurance coverage trade lobbyists, information studies and feedback from legislative officers recommend that lawmakers could squash one-way lawyer charges altogether in claims litigation; could additional restrict assignment-of-benefits agreements; present a layer of state-backed reinsurance for carriers; and make some changes to the Florida Hurricane Disaster Fund, maybe permitting simpler entry to the fund’s reinsurance.
New Home Speaker Paul Renner, R-Palm Coast, final week stated he’s aiming for “systemic reform” that can shore up the personal market and steer policyholders away from the ballooning, state-created Residents Property Insurance coverage Corp., in keeping with Florida Politics information web site.
He additionally didn’t rule out utilizing tax {dollars} to supply lower-cost reinsurance for insurers, which are actually going through one other spherical of double-digit value will increase from personal reinsurance companies.
Many within the insurance coverage trade have advocated for a decrease cat fund retention stage, or decrease deductible, for carriers, to permit them to entry the fund sooner, saving them considerably on reinsurance prices. However after Hurricane Ian hit Florida in September, the cat fund could also be compelled to go to the bond market and borrow billions of {dollars} to replenish its statutorily required reserve funding.
Now, an influential enterprise group is reiterating its warning to lawmakers to avoid tinkering with the fund.
“Increasing the scale and scope of the Florida Hurricane Disaster Fund sends an unlucky sign to personal reinsurance markets that their capital is unwelcome,” reads a particular session priorities briefing from Related Industries of Florida, which represents a variety of producers and different companies.
“Policymakers ought to guard in opposition to efforts to regulate its coverages on the expense of depleting its money build-up,” which might make it extra seemingly that Floridians and enterprise house owners might see one other surcharge or “hurricane tax.”
If the session is something like the primary insurance-dedicated particular session, held in Might, the reform package deal can be crafted by legislative leaders and the governor’s workplace shortly earlier than the session begins. In Might, the proposed payments have been unveiled lower than 48 hours earlier than the Capitol opened, and the payments sailed by way of in three days with nearly no adjustments.
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