Florida’s insurance coverage commissioner in early August famous that price will increase by property-casualty insurers within the state have slowed considerably since 2023 legislative reforms have been enacted, with 12 carriers asking for a small lower this yr and one other two dozen submitting for a zero price improve.
RLI Insurance coverage, a specialty insurer serving area of interest markets, doesn’t seem like following that development. The Illinois-based provider, licensed in Florida since 1975, will increase charges on private umbrella insurance policies, together with uninsured motorists’ protection, by a median of 16%, beginning Sept. 1, a use-and-file price submitting with OIR exhibits.
Greater than 57,000 insurance policies could also be affected.
The rise is on high of a 24% improve that was accepted and took impact in January, which implies that new or renewal insurance policies with a begin date after September will see each will increase, the RLI administrator for Florida, Charlie Hampton, stated in a Florida Affiliation of Insurance coverage Brokers’ weblog publish this week.
“I’m positive they (brokers) wont find it irresistible however they’ll perceive on this market,” she stated in an e mail Friday.
RLI additionally was accepted for a 13.8% improve in June 2023.
Officers with the publicly traded RLI couldn’t be reached for remark Friday morning.
The corporate, which started as a contact-lens insurer in 1965, has continued its profitability lately. RLI’s second-quarter earnings report exhibits nearly $82 million in internet earnings, up barely from Q2 2023. Its mixed ratio, a measure of profitability, stood at a startlingly low 81.5, a slight enchancment over the earlier yr and much under the trade common.
RLI’s inventory value final week and this week rose to an all-time excessive of $154 per share, Investing.com and Yahoo!Finance reported.
Whereas Florida regulators have touted latest price moderation, RLI is just not alone in submitting for double-digit will increase this yr because the Florida market recovers from what insurers have known as excessive litigation prices — earlier than new statutes took impact in 2022 and 2023.
Different carriers embody Individuals’s Belief Insurance coverage, which has requested a 14.8% improve on dwelling hearth insurance policies; First Protecting Insurance coverage, which has requested for a 14.7% improve on owners; and Cypress Property & Casualty Insurance coverage, which was accepted for an 18.7% hike on owners insurance policies. Residents Property Insurance coverage Corp. additionally has requested a 14% common price improve, the utmost allowed by the company’s statutory glide path.
So, it’s not sure that RLI’s newest submitting shall be accepted. At a price listening to in June, OIR officers repeatedly grilled a Individuals’s Belief government over the corporate’s HO price improve, approaching the heels of one other improve in 2023, Lisa Miller & Associates has reported.
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