OLDWICK, N.J.--(BUSINESS WIRE)--This A.M.BestTV episode explores Florida homeowners insurance carriers that say water mitigation companies that file insurance claims acquired from customers are driving up costs and raising premium rates. Click on http://www.ambest.com/v.asp?v=floridaclaims316 to view the entire program.
Florida has not experienced a major hurricane since Wilma in 2005; however, homeowners insurers are seeing an uptick in water claims.
“The challenge that Florida faces is one associated with assignment of benefits,” said Michael Koscielny Jr., director, underwriting, Florida Peninsula Insurance and president-elect, CPCU Society. “In South Florida, the challenge comes from those insurers that have legitimate water claims who often call a water mitigation company. .... In the process of settling some of those losses, some water mitigation companies will ask the insurer to sign an assignment of benefits,” continued Koscielny. He added that once the water mitigation company completes the work, the costs often are significantly higher than expected.
A.M. Best Assistant Vice President Rick Decker stated that this type of risk is new and is the type of item A.M. Best will ask an insurance company about when questioning it on its risk and enterprise risk management coverages.
Other people who appear in this episode include:
- Barry Gilway, chief executive officer, Citizens Property Insurance Corporation.
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- Reinsurers Look to New Risks, Regulations for Growth: At a recent CPCU Society seminar on reinsurance speakers and attendees said the emergence of the sharing economy and opportunities to take on public risk are opening new doors for insurers and reinsurers. Meanwhile, new regulatory requirements are raising the stakes for insurers: http://www.ambest.com/v.asp?v=cpcu316.
- Insurers See Range of Benefits to Charitable Efforts: Insurance leaders supporting the Insurance Industry Charitable Foundation said that not only is it good to participate in charitable activities, but it also helps to recruit and engage industry professionals: http://www.ambest.com/v.asp?v=iicf316.
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