Florida Office of Insurance Regulation Publishes 2017 Review of Assignment of Benefits Data Call Report

Jan 24, 2018

After the Florida House of Representatives passed HB 7015 relating to Property Insurance Assignment Agreements by a vote of 82 to 20 today, January 12, 2018, the Florida Office of Insurance Regulation (“OIR”) announced its publication of the “2017 Review of Assignment of Benefits (“AOB”) Data Call Report.”

To view the Report, click here.

The Report provides aggregated results of information received by the top 25 personal residential insurance companies encompassing more than 85 percent of the Florida market and writing Homeowners and Dwelling Fire policies from January 1, 2015 through June 30, 2017.

The Report findings show a larger progression in the geographic spread, frequency, and average severity of water loss claims across the state; however, the OIR explained that this occurred in half the time it took to develop as compared with the nearly six-year analysis of the February 2016 report on this same issue.

Since 2015, the frequency of water claims has risen by 44 percent, with all regions of the state experiencing double-digit claims increases.  Likewise, the average severity of water claims has increased by 18 percent.

The total combined impact of these changes reflect an average 42.1 percent annual increase in water losses, which is nearly triple the 14.2 percent average annual increase shown in the previous Report, the OIR said.

“I am thankful for the support of the Cabinet, bill sponsors, and all House members who have been working hard to address AOB reform,” Florida Insurance Commissioner David Altmaier said.  “The results of my Office’s newest report is a clear sign that Florida is seeing an aggressive rise in the number of water loss claims associated with an AOB and this impact is being felt statewide.  Without a legislative remedy, this problem will lead to an increase in homeowners insurance premiums and lack of consumer choice as insurers stop writing or renewing policies in areas with high water losses.  I look forward to working with the Florida Legislature and other stakeholders on a proactive solution to address this issue in the 2018 Session.”  

Of HB 7015’s passage today, Governor Rick Scott said, “I appreciate the Florida House for passing meaningful reforms that will help Florida families.  I look forward to continue seeing this important issue addressed throughout the legislative session.”

“House Bill 7015 is the multi-layered legislative approach our state needs to address the rapid climb in AOB water loss claims, and I applaud Rep. Jay Trumbull and the Florida House for passing this good bill today,” said Chief Financial Officer Jimmy Patronis.  “The data paints a bleak picture for Florida’s Insurance market.  With skyrocketing homeowners insurance costs, consumers are on the losing end.”

“As Attorney General, consumer protection is one of my top priorities, and I applaud the Office of Insurance Regulation’s efforts to protect policyholders. This legislation aims to protect homeowners who are simply trying to repair their homes after a disaster,” Florida Attorney General Pam Bondi added.




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