Bankers Insurance Group leaves Florida

Bankers Insurance Group leaves Florida

The already paralyzed Florida home insurance market is taking another hit. WESH 2 News has learned that another company, Bankers Insurance Group, is pulling out of the Florida home insurance market. “Florida’s private insurance market is collapsing,” said Mark Friedlander. Friedlander is the Florida spokesperson for the Insurance Information Institute. He said Bankers Insurance is now the 13th Florida home insurer to make such a change this year. The institute’s list includes home insurers who have announced Florida exiting the market, placed a moratorium on writing new business, or gone bankrupt. Friedlander said the bankers’ departure leaves people over 50 other possible options in the state. “It’s a very volatile market right now,” he said. In a statement, Bankers said, “This difficult decision was made to allow us to focus on our remaining lines and ensure they remain competitive and profitable. As the best-rated AM carrier, we remain financially sound. “Friedlander said there are approximately 25,000 policyholders who will be affected by the bankers’ decision. He said the company is expected to begin notifying policyholders in October as the Office of Insurance Florida’s Regulation must first approve the bankers’ exit plan. Under state law, Friedlander said the notices will give policyholders 120 days to make a change. “No policies will be affected in 2022,” he said. “They will not cancel any. medium-term policy, it’s not their plan. “Friedlander said the first people who will see the impact on their policies is next year. But he adds that people should start preparing now.” Start talking to yours. insurance agent as soon as possible to purchase your coverage and see what other options are available. There is no need to wait until you get that notice, “he said. WESH 2 News has reached out to bankers for more details on customers and awaits a response. Bankers will continue to offer renters, floods and commercial insurance. WESH 2 News has also contacted the Florida Office of Insurance Regulation to request an overview of the latest home insurers to leave the state of Florida, how many remain and how they are valued and is waiting for a response. More from Bankers Insurance Group: “As we communicated in the In recent weeks, unprecedented reinsurance costs in recent years are forcing many carriers, including bankers, to seek viable options to continue offering a mix of product lines in a struggling market. Recent legislative measures, unfortunately, are not successfully address the immediate financial challenges that property insurers face and claims, including the fight against fraud and litigation that exponentially outweighs any other state. Therefore, we have made the difficult decision to inform the Office of Insurance Regulation that bankers are pulling out of its Homeowners (HO3) and Dwelling Fire (DP3) lines in Florida. Bankers has been proud to have served these lines for decades and remains dedicated to its agents and policyholders. Bankers remains financially solid and committed to all commercial, Builders Risk, HO4, and Flood lines in the state. We want to remind you that we maintain a financial strength rating of at least B + from AM Best, meeting the requirements for mortgage lenders Fannie Mae and Freddie Mac. We will send an updated notice and an updated timeline of non-renewals that adhere to the notice requirement of 120 days in the state. Your loyalty to bankers over the past 46 years is critical to us and we felt compelled to communicate directly with you. This decision was difficult, however, necessary to enable us to grow responsibly and maintain our long-term financial goals. Insurance experts say shady contractors are playing legal loopholes in Florida

The already paralyzed Florida home insurance market is taking another hit.

WESH 2 News has learned that another company, Bankers Insurance Group, is pulling out of the Florida home insurance market.

“Florida’s private insurance market is collapsing,” said Mark Friedlander.

Friedlander is the Florida spokesperson for the Insurance Information Institute. He said Bankers Insurance is now 13th Florida home insurer to make such a change this year. The institute’s list includes home insurers who have announced Florida exiting the market, placed a moratorium on writing new business, or gone bankrupt. Friedlander said the bankers’ departure leaves people over 50 other possible options in the state.

“It’s a very volatile market right now,” he said.

In a statement, Bankers said, “This difficult decision was made to allow us to focus on our remaining lines and ensure they remain competitive and profitable. As the best-rated AM carrier, we remain financially sound. “

The company went on to explain that state lawmakers did not do enough during the special home insurance session to fight fraud and litigation.

Friedlander said there are about 25,000 policyholders who will be affected by the bankers’ decision. He said the company should begin notifying policyholders in October as the Florida Office of Insurance Regulation must first approve the bankers’ exit plan. Under state law, Friedlander said the notices will give policyholders 120 days to make a change.

“No policies will be affected in 2022,” he said. “They won’t cancel any medium-term policy, that’s not their plan.”

Friedlander said the first people who will see the impact on their policies is next year. But he adds that people should start preparing now.

“Start talking to your insurance agent as soon as possible to purchase your coverage and see what other options are available. There is no need to wait until you get that notice,” he said.

WESH 2 News has reached out to bankers for more customer details and awaits a response. Bankers will continue to offer renters, floods and commercial insurance.

WESH 2 News has also contacted the Florida Office of Insurance Regulation to request an overview of the last home insurers that have left the state of Florida, how many remain and how they are rated and is waiting for a response.

More from Bankers Insurance Group:

“As we have communicated in recent weeks, unprecedented reinsurance costs in recent years are forcing many carriers, including bankers, to seek viable options to continue offering a mix of product lines in a struggling market. Unfortunately, recent legislative measures have failed to adequately address the immediate financial challenges facing property and casualty insurers, including the fight against fraud and litigation that exponentially outweighs any other state. Therefore, we have made the difficult decision to inform the Office of Insurance Regulation that bankers are pulling out of its Homeowners (HO3) and Dwelling Fire (DP3) lines in Florida. Bankers has been proud to have served these lines for decades and remains dedicated to its agents and policyholders.

Bankers remain financially healthy and committed to all trade lines, risk builders, HO4s and floods in the state. We want to remind you that we maintain a financial strength rating of at least B + from AM Best, meeting the requirements for mortgage lenders Fannie Mae and Freddie Mac. 120 days in the state.

Your loyalty to bankers over the past 46 years is critical to us and we felt compelled to communicate directly with you. This decision was difficult, however, necessary to allow us to grow responsibly and maintain our long-term financial goals ”.

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