Frankly, Florida’s ailing property market is the result of many underlying causes. You’re familiar with the list and many of the solutions. Some items are subject to debate, particularly when it comes to priorities, but…conspicuous by its absence is hurricanes. Another season has ended bringing us to the five year mark without a wind event of any kind. Yet, loss frequency is up nearly 30%; severity is up 30%; the average loss per policy is up nearly 70%. The results are that we’ve had more rate increases and insolvencies after five years of no storms than we had after two years in which eight hurricanes ravaged our state.
What happened? Why have the losses for such traditionally profitable perils deteriorated so precipitously, and…only in Florida?
To find the answer we must go back to 2005. [Read more…] about THE REST OF THE STORY