Florida Property Insurance Company

Client: Florida Property Insurance Company

Engagement: Assist the Company in complying with new Florida statutory requirements regarding property insurance in Florida. In 2008, this also includes evaluating the impact of the financial crisis on the Florida real estate market, the Florida Hurricane Catastrophe Fund, and Citizens Property Insurance Company (Florida insurer of last resort). In addition, prepare and obtain approval of the Company’s rate and rule changes as soon as possible.

Merlinos Approach:

  • FALL 2008: Merlinos consultants collaborate to analyze impact of 2008 and prior years’ developments in the legislative and regulatory arenas on the upcoming year.
  • FALL 2008: The consultants monitor developments in the Credit markets as they relate to the ability of the FHCF to finance the required limits of reinsurance for Florida primary insurers.
  • NOVEMBER 2008-APRIL 2009: As bills are marked up in the House and Senate committees, the consultants work with the executives of each client to begin planning upcoming compliance requirements and their impact on the business plans and capital requirements of the insurers.
  • APRIL-MAY 2009: Once final passage of the legislation is achieved, the consultants prepare detailed analysis of the impact on the indicated rate levels for all affected products and assist in the development of a comprehensive plan of action. This also includes personal contacts with the actuaries and staff at the Office of Insurance Regulation to gain understanding of their interpretation of the new laws.
  • MAY-JUNE 2009: The consultants work with the Company’s reinsurance brokers to develop the required analysis of the cost of the catastrophe reinsurance program. Consultants start to implement plan of action with review of model results of Company’s current exposures and compare model losses to the prior year and the upcoming year reinsurance program. Consultants review impacts of changes to reinsurance program and Company experience to produce proposed rate adjustments.
  • JUNE-JULY 2009: Rate and rule filings are prepared that comply with all new statutory and regulatory requirements. These proposed rates also include other changes that achieve company goals regarding rate adequacy, competitiveness, and classification refinement.
  • JULY-AUGUST 2009: If a public hearing is required, the actuaries work with the insurers’ management to prepare testimony and present at the hearing.
  • AUGUST-SEPTEMBER: Work aggressively with the OIR actuarial staff to respond to any questions regarding the pending filings and obtain approval.
  • SEPTEMBER 2009 and ongoing: Monitor the filings and implemented changes for competitor companies and prepare comparison reports for management review.
  • FALL 2009: Process for the next year’s cycle.

For more information on our Coastal Property Consulting services, please click here.

For more information on our Florida Rate Filing Assistance, please click here.


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