Florida lawmakers can expect substantial pressure to tackle the assignment of benefits (AOB) and water loss claims crisis from the state’s insurer of last resort when Florida’s legislative session begins early next year.
At a governing board meeting Wednesday, leaders of Citizens stressed that rising water claims and “out of control” litigation are threatening the insurer’s long-term financial stability and will stifle efforts by Citizens to offer premium breaks to policyholders in 2017
The company said that barring significant changes, including possible legislative action on assignment of benefits, non-hurricane losses will continue to chip away at Citizens‘ reserves and could result in policies returning to the state’s insurer of last resort as private insurers face similar challenges.
“Without significant reform, litigation, water claims and AOB pose a serious threat to the financial position of Citizens,” said Chris Gardner, chairman of the Board of Governors. “This is not a sustainable situation.”
Citizens plans to make AOB reform its 2017 legislative priority, the company said