AM BestTV: With AOB Battle Winding Down in Florida, Florida Association for Insurance Reform Sets Sights on Flood
OLDWICK, N.J.--(BUSINESS WIRE)--May 20, 2019--
In this AM BestTV episode, leaders of Florida Association for Insurance Reform (FAIR) said new legislation sets stricter rules governing how consumers, contractors, lawyers and insurers are affected by assignment of benefits for insurance claims. Click on http://www.ambest.com/v.asp?v=fairpanel519 to view the entire program.
Jay Neal, president & chief executive officer, FAIR, spoke about the need for expanded private flood coverage, but said that there is still a place for the current federal flood program.
“Private companies offering private products will make the National Flood Insurance Program better coverage for insurance consumers. Our aspirational goal is similar to that of FEMA. In five years, we want to double the amount of flood policies in force. In 10 years, we want to take it eight times what it is today. If we can issue 40 million policies, it would represent roughly 30% of the households in the United States,” he said. “We see it time and time again. These disasters hit outside of special hazard zones, and people lose their homes. There is a perception with some that the federal government is going to fly in and save you and that just simply does not happen.”
Paul Handerhan, senior vice president of public policy, FAIR, lauded reforms passed in the Florida Legislature related to the assignment of benefits; however, he noted the full effect of those reforms will take time.
“The reason why is because we have so many tens of thousands of lawsuits already working their way through the courts,” said Handerhan. “Those cases won’t get resolved probably for the next one, two or three years down the road. As those costs are born continually by the insurance company over the next three years, you will still see those going back into the rate. It will take quite a while until you see that rate pressure really decrease.”
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KEYWORD: UNITED STATES EUROPE NORTH AMERICA NEW JERSEY
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SOURCE: AM Best
Copyright Business Wire 2019.
PUB: 05/20/2019 02:35 PM/DISC: 05/20/2019 02:35 PM