Florida cites 18 insurer red flags in H1; two carriers put on watch

Some 18 Florida insurers qualified for potential state supervisory review for having shown signs of financial instability during the first half of 2023. Two will go under the microscope.

The list of trigger notifications, published by the Florida state regulator in a mid-year stability report, includes an unspecified number of insurers who had already qualified during prior periods. The list covers notifications through June 18.

Altogether the 18 insurers ticked a total of 26 boxes that would mandate consideration for regulatory intervention, Florida's Office of Insurance Regulation (OIR) said.

Two of the firms offered sufficiently worrying signals to qualify for the enhanced monitoring regime, joining a crowd of 16 already under the regulatory microscope.

From the batch of 18 notifications, one insurer was said to have filed notice of intent to non-renew more than 10,000 policies, six failed to file financial statements on time and two have published financial statements showing them to be "in an unsound condition, has exceeded its powers, is impaired, or is insolvent." Six notifications followed projected or actual premiums out of line with thresholds to policyholder surplus.

As has been reported, one insurer was referred to regulators for delinquency: United Property & Casualty Insurance Company went on to be declared insolvent in February.

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