Bright future ahead for Florida insurance sector

Leaders from Florida’s insurance sector pointed to a brighter future as a result of property insurance reforms, during a panel discussion at the Bermuda Risk Summit on March 7.

A ream of legislative changes passed in the Sunshine State in 2022, including one that means proof of breach of contract is now required to assert a bad faith claim.

Panellist Tom Gallagher, former Florida insurance commissioner and chief operating officer of People’s Trust Insurance Company, welcomed the reforms.

“This legislation should make major differences in the cost of storms,” Gallagher said at the session, titled “Market Perspectives from Florida’s C-Suite”.

“This is the first time that we’ve had leadership totally in line in fixing a major problem that’s been going on for a long time.

“We were always the third worst litigious state in the country, and we have leadership that wants to see us as the best state for litigation in the country.

“Nobody says that people shouldn’t have a right to sue. We all agree it’s the American way. But it should be legitimate, and it should be forced to be legitimate.”

Melissa Burt DeVriese, president of Security First Insurance, told the audience at the Fairmont Hamilton Princess: “I’m very optimistic. The future is extremely bright. The legislative changes have us all feeling very optimistic.”

The panel discussion, on the second day of the Summit, was moderated by Susanne Murphy, insurance regulatory consultant at Meenan PA. Other panellists were Jennifer Montero, chief financial officer at Florida Citizens Property Insurance Corporation; and Cecil Pearce, president of Florida Insurance Council.

Panellists discussed how Bermuda has met the needs of the Florida insurance market for 30 years.

Murphy noted reinsurers on the Island are expected to cover about $13 billion of gross losses from Hurricane Ian last year.

“The Bermuda market is extremely important to Florida,” she said.
“We’d like to cultivate and continue that relationship in the future for the benefit of our domestic market.”