Florida Citizens

The Senate bill contains a highly debated provision that could cause homeowners to face a new deductible for roof-damage claims.

Noting concerns about rapid growth, the Citizens board approves rate hikes up to the legal limit.

The new adjustments will increase rates 7.6% on average after February 1, 2022.

Nephila was the biggest provider on the 2021 reinsurance programme for Florida Citizens as it wrote a total line of $601mn, comprising 36% of the state-run insurer’s $1.65bn placed private traditional limit.

The cedant initially sought just $500mn from the deal.

Whatever their eventual impact on runaway loss inflation the fact reforms were enacted at all is a happy surprise for the industry.

The state insurer will raise $800mn-$950mn after initially launching with a modest $500mn target.

The Senate has signed off an insurance reform bill which eliminated earlier proposals on cash roof settlements and fee multipliers, but reduced the statue of limitations and made other pro-industry changes.

It will more than replace a $250mn deal from 2018 which will mature this year.

After sizeable increases to take-up in 2019 and 2020, many carriers were already at maximum participation for state Cat Fund coverage.

The insurer is turning to the ILS market after a busy year for Florida deals in 2020.

The carrier is legally obligated to sell cover at “actuarially sound rates”.