TALLAHASSEE, FL / ACCESSWIRE / June 28, 2018 / Florida homeowners should beware of a recent press release by Weiss Ratings that contains misleading information about the financial stability of our state's homeowner's insurance companies. This is simply not the truth. The Florida Property & Casualty Association (FPCA) wants all homeowners in our state to rest assured that Florida home insurance companies are financially strong, heavily reinsured, and committed to serving their customers.
Florida home insurers have passed the rigorous catastrophe reinsurance stress test put forth by the Florida Office of Insurance Regulation (OIR) as well as the vertical and horizontal reinsurance reviews of credible rating agencies. Furthermore, insurers in this state have combined capital and reinsurance to pay all claims resulting from three Hurricane Andrew-sized storms.
Weiss Ratings opinions are not recognized for use by Fannie Mae, Freddie Mac, or the U.S. Dept. of Housing and Urban Development, and certainly not by the insurance industry because they fail to consider the rigorous reinsurance programs purchased by insurance carriers on an annual basis.
Furthermore, the claim in the press release that "many" Florida homeowners with Hurricane Irma claims were still waiting to be paid is misleading. In reality, 91.5% of residential property claims have already been adjusted and paid, according to filings received by the Florida Office of Insurance Regulation (OIR) as of June 12, 2018.
"The number and financial strength of insurers operating in Florida have improved markedly since the 1990s," said William Stander, executive director of the FPCA. "Today, the market is much healthier, competitive and homegrown. This positive change is the result of local entrepreneurship in cooperation with the state's legislature, governor, cabinet, Florida Office of Insurance Regulation, and Florida's Insurance Commissioner."
Weiss Ratings is an organization that markets high-priced investment newsletters with emails titled "The Secret Pattern that Could Predict the Next Crash" and "The Coming New Black Market for Gold." Rating agencies such as A.M. Best and Demotech are more widely recognized as qualified insurance company rating agencies.
About the Florida Property & Casualty Association
The FPCA (www.fpcaonline.org) was established in 1997 to represent Florida-based home insurers to foster and promote a healthy and competitive Florida insurance market. Through its lobbying and communications teams, the FPCA works to educate Florida lawmakers, regulators and homeowners on issues and policies that affect property and casualty insurance. The organization is recognized as a source for timely information on insurance legislation and regulation, as well.
SOURCE: Florida Property & Casualty Association