It hasn’t been made official by the governor’s office, but Florida legislative leaders have set a date for a second special session to tackle property insurance issues – Dec. 12 through Dec. 16.
The date is confirmed by the newly sworn Senate leadership and House leadership. This coincides with the already-planned plenary meetings and organizational meetings for 2023’s regular session of Congress, which begins in March. This week is expected to see a formal proclamation about the special session.
The memos did not address what reforms may be on the agenda, but insurance industry lobbyists, news reports and comments from legislative officials suggest that lawmakers may squash one-way attorney fees altogether in claims litigation; may further limit assignment-of-benefits agreements; provide a layer of state-backed reinsurance for carriers; and make some adjustments to the Florida Hurricane Catastrophe Fund, perhaps allowing easier access to the fund’s reinsurance.
New House Speaker Paul Renner, R-Palm Coast, last week said he is aiming for “systemic reform” that will shore up the private market and steer policyholders away from the ballooning, state-created Citizens Property Insurance Corp., according to Florida Politics news site.
He also said that tax dollars could be used to lower the cost of reinsurance for insurance companies, who are facing another round in double-digit price rises from private firms.
Many insurance professionals advocate for a lower retention level for cat funds or a lower deductible for carriers. This will allow them to access the fund quicker and reduce their reinsurance costs. However, after Hurricane Ian in September hit Florida, the cat fund may have to go to bond market to borrow billions to replenish its statutorily required reserve funds.
An influential business group has reaffirmed its warning to legislators to avoid tinkering the fund.
“Expanding the size and scope of the Florida Hurricane Catastrophe Fund sends an unfortunate signal to private reinsurance markets that their capital is unwelcome,” reads a special session priorities briefing from Associated Industries of Florida, which represents a range of manufacturers and other businesses.
“Policymakers should guard against efforts to adjust its coverages at the expense of depleting its cash build-up,” which could make it more likely that Floridians and business owners could see another surcharge or “hurricane tax.”
If the session is anything like the first insurance-dedicated special session, held in May, the reform package will be crafted by legislative leaders and the governor’s office shortly before the session begins. The bills were presented less than 48 hours prior to the Capitol opening. They passed the Capitol in just three days.
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Florida
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