Florida’s home insurance availability crisis continues to claim new victims, and worries are mounting that more companies could be declared insolvent as this year’s hurricane season draws near.
The industry’s financial storm clouds have prompted fears of collapsing companies and the massive growth of state-owned Citizens Property Insurance Corp., the insurer of last resort:
—Last week, the president and CEO of Demotech, which rates the financial stability of about 50 Florida-based insurers, sent a letter to the governor and leaders of the House and Senate imploring them to call a special session and enact reforms to stem financial losses and litigation. Without reforms, he said, Demotech will likely downgrade financial stability ratings of “a number” of insurers.
