Meeting Packet - Insurance & Banking Subcommittee (October 13, 2021)
Summary
A meeting packet for the Insurance & Banking Subcommittee of the Commerce Committee, The Florida House of Representatives, Chair Nick DiCeglie, for Wednesday, October 13, 2021. The agenda lists a Citizens Property Insurance presentation regarding the state of the property insurance marketplace in Florida. The packet contains the slides of Barry Gilway, President/CEO and Executive Director, including tables of Florida domestic insurers with net income and direct premiums written in $000, sourced to S&P Global Market Intelligence. A slide sourced to Guy Carpenter states that for 2022, rate increases of up to 10% are expected, with most insurers in the 5%-10% range, while Citizens' rates are expected to be unchanged to up to 5% higher.
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Insurance & Banking
Subcommittee
Wednesday, October 13, 2021
9:00 AM - 10:30 AM
Morris Hall (17 HOB)
Meeting Packet
Chris Sprowls Nick DiCeglie
Speaker Chair
The Florida House of Representatives
Commerce Committee
Insurance & Banking Subcommittee
Chris Sprowls Nick DiCeglie
Speaker Chair
Meeting Agenda
Wednesday, October 13, 2021
9:00 AM – 10:30 AM
Morris Hall (17 HOB)
I. Call to Order
II. Roll Call
III. Welcome and Opening Remarks
IV. Citizens Property Insurance Presentation regarding the state of the property insurance
marketplace in Florida
V. Closing Remarks
VI. Adjournment
303 House Office Building, 402 South Monroe Street, Tallahassee, FL 32399-1300
(850) 717-4870
Citizens Property Insurance
House Insurance and Banking Subcommittee
Barry Gilway, President/CEO and Executive Director
October 13, 2021
~ ITIZ"~~
PftOPERTY INSURAN
Top 10 Florida Domestic Insurers Net Income
Direct
Premiums Net Income
Written ($000)
($000)
Company 2020 2Q 2021 2020 2019 2018 2017
1 $1,507,073 ($2,987) ($100,317) ($50,169) $3,587 $36,226
2 $1,337,257 ($45,628) ($37,082) ($29,879) $27,543 ($6,962)
3 $1,165,255 ($68,331) ($59,575) ($19,408) ($47,465) ($22,712)
4 $791,785 ($44,481) ($13,329) ($20,828) ($13,167) ($17,178)
5 $633,523 ($16,616) ($32,616) ($23,453) ($64,998) $7,587
6 $618,575 ($59,859) ($35,392) ($18,174) $10,218 ($13,874)
7 $529,271 $3,446 ($4,695) ($11,649) ($1,448) $5,017
8 $450,045 $4,779 ($3,988) ($1,270) $710 ($9,092)
9 $410,739 $590 ($27,492) ($22,111) ($9,519) ($5,812)
10 $406,326 ($12,202) ($21,748) ($17,551) ($11,843) $2,579
Source: S&P Global Market Intelligence where top 10 is based on 2020 Direct Premiums Written
1
Florida Domestic Insurers Net Income
Direct
Premiums Net Income
Written ($000)
($000)
Company 2020 2Q 2021 2020 2019 2018 2017
11 $369,788 ($7,455) ($30,349) $2,706 $4,598 ($2,209)
12 $362,695 $2,895 ($1,099) $3,515 $1,152 $2,560
13 $357,650 $1,475 ($28,779) $18,443 $20,758 ($10,511)
14 $348,560 ($76,290) ($119,191) ($22,617) ($1,904) ($109)
15 $336,268 ($32,977) ($8,666) ($17,433) $20,903 $17,682
16 $278,475 $2,226 ($21,135) ($2,806) $15,386 $9,877
17* $264,140 ($16,440) ($6,159) ($5,837) ($6,832) ($1,369)
18 $244,266 ($2,904) ($19,273) $10,829 $18,632 ($26,463)
19 $238,663 $103 $235 $297 $325 $463
20* $233,942 $1,995 $4,491 $5,569 $4,278 $2,213
Source: S&P Global Market Intelligence
2
*Company is not a Florida domestic but is either part of a company group that is or has a high volume of FL business
Florida Domestic Insurers Net Income
Direct
Premiums Net Income
Written ($000)
($000)
Company 2020 2Q 2021 2020 2019 2018 2017
21 $219,430 ($8,665) ($2,698) ($2,674) ($5,257) ($4,096)
22* $213,957 ($31,023) ($71,625) ($20,304) ($3,523) ($2,709)
23 $209,891 $6,994 ($3,131) $4,549 $109 ($1,033)
24 $147,346 $1,156 $116 ($6,220) ($10,618) ($5,281)
25 $145,081 ($4,783) ($10,581) ($350) ($7,187) ($2,117)
26 $143,235 ($118) ($5,654) ($6,812) ($9,175) ($1,482)
27 $139,898 ($1,442) ($1,783) ($1,985) ($735) ($2,030)
28 $137,027 ($127) ($1,861) $598 ($4,833) $355
29 $127,220 $3,602 ($6,853) ($4,554) ($3,854) ($2,244)
30 $125,663 $675 $1,731 ($2,109) $682 ($2,493)
Source: S&P Global Market Intelligence
3
*Company is not a Florida domestic but is either part of a company group that is or has a high volume of FL business
Florida Domestic Insurers Net Income
Direct
Premiums Net Income
Written ($000)
($000)
Company 2020 2Q 2021 2020 2019 2018 2017
31 $122,654 - ($22,552) ($4,120) $86 ($2,090)
32 $120,058 ($5,305) ($5,410) ($13,347) ($435) $605
33 $105,816 ($8,656) ($10,893) ($5,164) $2,034 ($797)
34 $105,383 ($10,018) ($21,577) $1,442 ($2,996) $1,680
35 $101,497 ($860) ($2,631) ($3,710) $230 ($246)
36 $98,436 ($21,913) ($35,955) $1,456 ($1,303) $67
37* $98,254 ($27,126) ($14,551) ($15,085) ($2,825) ($2,309)
38 $91,107 ($2,943) ($5,129) ($1,495) $1,839 ($2,466)
39 $81,817 ($23,560) ($8,555) ($6,059) ($6,473) ($16,978)
40 $71,849 - $2,169 ($3,846) ($1,026) ($1,644)
Source: S&P Global Market Intelligence
4
*Company is not a Florida domestic but is either part of a company group that is or has a high volume of FL business
Florida Domestic Insurers Net Income
Direct
Premiums Net Income
Written ($000)
($000)
Company 2020 2Q 2021 2020 2019 2018 2017
41* $70,456 ($42) ($2,577) ($241) ($1,307) $1,139
42 $63,308 ($5,767) ($7,507) ($2,323) ($4,579) $4,314
43 $57,848 $2,795 $4,127 $2,540 $1,550 ($2,731)
44 $28,608 ($257) ($778) ($1,192) $65 $57
45 $24,420 ($105) ($7,332) $392 ($1,119) ($2,379)
46 $20,820 ($792) ($7,532) ($3,535) ($7,325) ($5,738)
47 $19,434 ($12,819) ($8,613) ($644) - -
48 $18,634 ($262) ($843) ($8) ($825) ($749)
49 $16,109 ($297) $105 $3,868 ($10,308) ($2,885)
50 $13,645 ($3,552) ($1,253) ($429) ($568) $246
Source: S&P Global Market Intelligence
5
*Company is not a Florida domestic but is either part of a company group that is or has a high volume of FL business
Florida Domestic Insurers Net Income
Direct
Premiums Net Income
Written ($000)
($000)
Company 2020 2Q 2021 2020 2019 2018 2017
51 $11,798 ($3,421) $1,237 $898 $312 -
52 $10,406 $4,167 ($4,022) $252 ($469) ($576)
TOTAL $13,845,399 ($523,123) ($828,571) ($312,039) ($108,922) ($88,697)
Source: S&P Global Market Intelligence
Insurer Options:
• Replace lost capital
• Reduce overall writings
• Raise rates
6
Market Conditions
Policies in Force by Year and Account
1,200,000
Liquidation of 3 FL domestic carriers and
Liquidation of Poe Financial State Farm partial withdrawal from market
Group due to 2004/2005
1,000,000 claims
High volume of High volume of depopulation
depopulation activity activity
800,000
High volume of
depopulation activity Liquidation of Florida Specialty
600,000 Insurance Company
400,000
200,000
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Aug-21
PLA 383,283 416,529 407,387 743,592 845,857 629,467 609,652 829,406 1,003,856 860,502 627,391 373,617 299,902 293,118 300,507 304,507 322,792 407,325 528,125
COASTAL 433,077 453,755 399,418 403,509 446,181 445,200 410,436 445,679 460,161 446,163 386,688 282,863 200,842 160,834 138,591 121,971 118,673 134,687 158,246
CLA 3,863 3,702 3,212 8,841 12,911 9,570 9,126 8,453 8,374 8,146 7,615 4,681 3,121 1,891 1,308 919 738 727 708
Total 820,223 873,986 810,017 1,298,922 1,304,949 1,084,237 1,029,214 1,283,538 1,472,391 1,314,811 1,021,694 661,161 503,865 455,843 440,406 427,397 442,203 542,739 687,079
Tri-County % 59% 52% 49% 45% 45% 40% 40% 43% 43% 44% 45% 47% 50% 51% 50% 51% 50% 54% 53%
Take-Out Policies Serviced 12,130 32,048 203,771 248,108 288,519 121,301 43,494 23,601 13,822 4,962 5,892 1,443
Citizens is currently growing by a net of 5,000 policies per week
Note: Historical data by County prior to 2003 and for Take-Out Policies Serviced prior to 2010 are not available.
7
Market Conditions
Week-over-Week Policy Count for lnforce
10/8/2021 713,349 710,039 3,310
Ylh
696K
676K
656K
636K
616K
596K
576K
556K
536K
516K
Nov 2020 Dec 2020 Jan 2021 Feb 2021 Mar 2021 Apr 2021 May 2021 Jun 2021 Jul 2021 Auq 2021 Sep2021 Oct 2021
8
~ ITIZENS
Private Market Guideline Changes
• Increasing minimum and maximum Coverage A (dwelling) limits
• Minimums as high as $500,000+, particularly in SOLO and tri-county
• Maximums have increased to $2M+
• Restricting new business and cancelling/non-renewing business, particularly
in SOLO and tri-county
• Some carriers have stopped writing new business completely
• Tighter requirements for New business:
• Roof age as low as 10 years for shingle roofs
• Age of home 10-20 years or newer
• Filing for 5 years roof age limitation was disapproved by OIR
• Restricting water coverage
• $10,000 limit still the norm on older homes
• Newer homes require inspection for full water coverage in some counties
• Higher and more frequent rate increases
• Some carriers have taken 3-4 increases a year, 20% + not uncommon
SOLO = Orlando –area counties of Seminole, Osceola, Lake, Orange
9
Market Conditions
Market Impacts
• Market Capacity - Rate increases & eligibility changes
• Insolvencies and consent orders – policies written by Citizens
◦ Weston – 58 of 391 commercial policies
◦ American Capital insolvency – 19 of 1700 commercial policies
◦ 45-day cancelations – Gulf Stream, Universal Insurance Company
of North America, Southern Fidelity – 6,280 of 29,800 policies
◦ Gulfstream insolvency – 4,801 of 32,324 policies
• Commercial Condo Collapse (Commercial Lines & Personal Lines)
10
Citizens’ HO-3 Competitive Position
91% of Citizens’ HO‐3
policies are LESS than the
average competitor’s
approved rates as of There’s very little
10/1/20 using Citizens’ in green on the map
force data as of 9/30/20
In 2020, 105 rate filings for
increases of 10% or more
have been made with the
Office of Insurance
Regulation1 NOTE: Territories in black have
no HO-3 policies
Source: 1 O’Connor, Amy, “Florida’s Property Insurance Market Is ‘Spiraling Towards Collapse’ Due to Litigation Report”, Insurance
Journal, Web January 20, 2021. <https://www.insurancejournal.com/news/southeast/2021/01/20/598034.htm>
11
Citizens’ Competitive Position Percent Differences by Territory
% % %
Policy Difference Policy Difference Policy Difference
Territory Territory Territory
Count to Count to Count to
Competitors Competitors Competitors
Suwannee (933) 14 22% Desoto (712) 36 (16%) Lake (692) 391 (27%)
Levy - Remainder (734) 14 21% Hendry (553) 84 (17%) Monroe - Remainder (5) 724 (27%)
Gulf - Remainder (722) 2 18% Orange - Orlando (49) 226 (17%) Indian River - Remainder (561) 426 (28%)
St. Lucie - Coastal (183) 59 11% Palm Beach - Remainder (38) 16,141 (18%) St. Lucie - Remainder (562) 1,059 (28%)
Indian River - Coastal (181) 13 10% Flagler - Coastal (531) 32 (19%) Seminole (512) 740 (29%)
Gulf - Coastal (604) 11 4% Duval - Jacksonville (39) 698 (19%) Sarasota - Remainder (715) 1,322 (29%)
Nassau - Remainder (892) 27 3% Taylor - Remainder (737) 4 (20%) Sarasota - Coastal (583) 803 (29%)
Dade - Hialeah (33) 3,425 3% Putnam (992) 63 (20%) Levy - Coastal (594) 64 (30%)
Escambia - Coastal (602) 7 (0%) Jefferson - Remainder (793) 16 (20%) Bay - Remainder (721) 212 (30%)
Walton - Coastal (609) 26 (1%) Orange - Remainder (90) 1,748 (20%) Hernando - Coastal (159) 1,162 (30%)
Dade - Miami Beach (30) 242 (1%) Martin - Coastal (182) 3 (20%)
Duval - Coastal (41) 110 (30%)
Wakulla - Coastal (608) 13 (3%) Madison (932) 6 (21%)
Dade - Miami (32) 5,846 (30%)
Wakulla - Remainder (725) 35 (4%) Gilchrist (923) 24 (21%)
Dixie - Coastal (592) 24 (30%)
Sumter (921) 51 (4%) Pasco - Coastal (595) 1,004 (21%)
Volusia - Remainder (63) 1,200 (30%)
Broward - Coastal (361) 192 (4%) Highlands (714) 111 (21%)
St Johns - Remainder (702) 197 (32%)
Franklin (603) 39 (5%) Lee - Coastal (542) 196 (21%)
Martin - Remainder (10) 422 (33%)
Marion (792) 304 (6%) Pinellas - Coastal (42) 709 (21%)
Collier - Coastal (541) 129 (9%)
St Johns - Coastal (533) 153 (34%)
Palm Beach - Coastal (362) 389 (22%)
Dixie - Remainder (732) 10 (10%) Santa Rosa - Remainder (724) 174 (34%)
Volusia - Coastal (62) 252 (22%)
Flagler - Remainder (701) 71 (10%) Okeechobee (555) 61 (35%)
Manatee - Coastal (582) 121 (22%)
Dade - Coastal (31) 264 (10%) Duval - Remainder (40) 1 (22%)
Monroe - Key West (7) 64 (36%)
Walton - Remainder (726) 32 (11%) Washington (934) 30 (23%) Leon (993) 229 (36%)
Liberty (931) 6 (11%) Bay - Coastal (601) 81 (24%) Glades (552) 21 (36%)
Polk (50) 659 (11%) Taylor - Coastal (596) 79 (25%) Pasco - Remainder (736) 7,802 (36%)
Santa Rosa - Coastal (607) 3 (12%) Citrus - Coastal (591) 137 (25%) Hillsborough -Tampa (47) 4,759 (36%)
Broward - Hlwd & Ft Laud (35) 7,732 (12%) Escambia - Remainder (43) 413 (25%) Manatee - Remainder (735) 1,278 (37%)
Lafayette (893) 3 (12%) Collier - Remainder (551) 599 (25%) Hernando - Remainder (733) 8,878 (38%)
Alachua (192) 147 (12%) Hillsborough - Excl Tampa (80) 8,457 (26%) Jackson (693) 85 (39%)
Columbia (293) 29 (12%) Clay (492) 183 (26%) Okaloossa - Remainder (723) 221 (39%)
Broward - Remainder (37) 32,520 (13%) Okaloossa - Coastal (606) 19 (26%) Brevard - Remainder (64) 1,662 (40%)
Lee - Remainder (554) 1,159 (13%) Charlotte - Remainder (711) 658 (26%) Holmes (593) 30 (42%)
Baker (292) 14 (14%) Citrus - Remainder (731) 538 (27%) Brevard - Coastal (57) 1,357 (42%)
Dade - Remainder (34) 53,504 (14%) Union (922) 4 (27%) Charlotte - Coastal (581) 558 (42%)
Hardee (713) 13 (15%) Calhoun (193) 5 (27%) Gadsden (393) 142 (43%)
Hamilton (493) 5 (15%) Nassau - Coastal (532) 72 (27%) Pinellas - Remainder (81) 19,350 (45%)
Bradford (392) 14 (16%) Osceola (511) 813 (27%) Pinellas - St Petersburg (46) 11,001 (51%)
Source Data: Rate comparison using competitors approved rates as of 10/1/20 using Citizens’ data as of 9/30/20
12
Industry Homeowner Rate Filings
Direct Written Cumulative
Approved Rate
Premium Rate
Company Name Change %
in millions Change %
2020 2020 2021 2020-2021
Universal Property & Casualty Insurance $ 1,159.4 13% 16% 31%
State Farm Florida Insurance Company $ 671.0 0% 5% 5%
Heritage Property & Casualty Insurance Company $ 409.4 15% 8% 24%
First Protective Insurance Company $ 357.8 5% 10% 16%
FedNat Ins Co $ 356.0 8% 16% 25%
ASI Preferred Insurance Corporation $ 353.7 35% 0% 35%
Homeowners Choice Property & Casualty Insurance Company $ 316.7 11% 3% 15%
Tower Hill Signature Ins Company $ 305.3 14% 0% 14%
Federal Insurance Company $ 260.8 9% 4% 12%
United Services Automobile Association (USAA) $ 249.1 0% 0% 0%
Family Security Insurance Company $ 242.5 65% 0% 65%
United Property & Casualty Insurance Company Inc. $ 189.5 12% 0% 12%
Tower Hill Prime Insurance Company $ 165.2 26% 0% 26%
Tower Hill Preferred Insurance Company $ 135.9 14% 0% 14%
USAA Casualty Insurance Company $ 129.0 0% 0% 0%
Castle Key Indemnity Company $ 102.3 0% 15% 15%
Castle Key Insurance Company $ 91.0 0% 13% 13%
TypTap Insurance Company $ 90.2 14% 0% 14%
American Strategic Insurance Corporation $ 71.1 28% 0% 28%
Source Data: S&P Global Market Intelligence using homeowner rate filings reported through 9/6/2021
13
Citizens’ Homeowner Rate Filings
Actuarially
Approved
Year Sound Difference
Rate Change
Rate Change
2019 24.7% 5.2% (19.5%)
2020 10.5% 3.1% (7.4%)
2021 21.9% 6.2% (15.7%)
Includes HO-3 multi peril and HW-2 wind-only policies
14
Citizens’ Senate Bill 76 Homeowner Rate Change
Initial Rate Change Indicated
Approved
Additional
Year Total Rate
Rate Due to
Indicated Approved Change
SB 76
2021 21.9% 3.2% 2.9% 6.2%
Includes HO-3 multi peril and HW-2 wind-only policies
Indicated additional rate due to SB 76 is effective 2/1/2022
• SB 76 requires that Citizens price for the cost of reinsurance to cover the
projected 100-year PML and include in its rate calculations even when it
is not purchased.
• SB 76 amended Citizens’ rate glidepath from 10% per year as follows:
• 11% for 2022.
• 12% for 2023.
• 13% for 2024.
• 14% for 2025.
• 15% for 2026 and thereafter.
15
Property Insurance Clearinghouse
Existing Carrier Participation
Policy Type Homeowners Homeowners Dwelling Condo Mobile Home
Company (Multiperil) (Wind-Only)
American Traditions X
Safe Harbor / Cabrillo X X X X
Edison X X
FedNat X X X
Florida Peninsula X X
Heritage X
Monarch X
Southern Oak X X X X
UPC X
Weston X
16
SB 76 – 20% Eligibility Change
Total New Business Policies Receiving Offers of Coverage
New 120% Threshold Results Compared to Prior 115% Threshold
Results within 120% of Citizens’ premium Results within 115% of Citizens’ premium
Eligible Ineligible Grand Total Eligible Ineligible Grand Total
New Business 23,736 11,838 35,574 New Business 24,664 10,910 35,574
Data from 7/1/21 – 9/30/21
Net impact: An additional 928 New Business risks deemed ineligible to be written by
Citizens (that would not have been rendered ineligible under the old 115% rule).
17
Carrier Litigation Experience 2013 – September 2021
Carrier Litigation
Experience 2013 –
September 2021
Jan – Sep 2020 vs Jan – Sep 2021 Notes:
1. Total Lawsuits Overall Litigation increased by 29% (62,102 to 80,315)
2. Projected 2021 Year-End Litigation (100,000) would reflect a 25% increase from
2020.
Data source – DFS LSOP 2013 – September 2021
18
Carrier Litigation Experience 2019 – September 2021
2019 vs Sep 2021 Notes:
1. HB7065 was enacted July 1, 2019, to address rising AOB litigation.
2. SB76 was enacted July 1, 2021, to address overall litigation.
3. The majority of Citizens AOB litigation is from pre-HB 7065
19
Carrier Litigation Experience 2013 – September 2021
Jan – Sep 2020 vs Jan – Sep 2021 Notes:
1. Total Lawsuits AOB Litigation increased by 57% (13,012 to 20,391)
2. Total Lawsuits Overall Litigation increased by 29% (62,102 to 80,315)
3. The majority of Citizens AOB litigation is from pre-HB 7065
Data source – DFS LSOP 2013 – September 2021
20
Global Insured Losses
In 2020, there were $97B of insured losses globally, which was mostly driven by smaller events as no
single event incurred more than $3B of insured losses
For the first half of 2021, insured losses were approximately $42B globally, which is above the 10-year
average of $33B for first half of the year and is the second highest first half of the year after 2011 where
$104B was incurred
Global Losses
$600
$557
The estimated 2021 data
does not include Hurricane
$500 $485
Ida’ estimated losses,
which is estimated to be
$400 approximately $30-$45B
$397 bringing the global insured
($ in Billions)
$324 losses thus far to
$300 $283 $273 $269 $268 approximately $90B.
$246 $247
$200 $172 $169 This is greater than all
$196 $165 $171
$211 $170 years since 2012 except for
$186
$122 $93 2017 when the losses were
$100 $124
$160 $161 $161 billion, 2018 when the
$51
$87 $104 $97
$60 $62 $77 losses were $104 billion,
$50 $45 $42
$0 and 2020 when the losses
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 1H 2021 were $97 billion
Insured Losses Uninsured Losses 10-Yr Avg Insured Losses
Source: Aon Benfield
21
Reinsurance Market Capital
There is $650B of global reinsurer capital after the first half of 2021, however U.S. property risk transfer ROL
is up by approximately 30% since 2015
Even though global risk has exponentially increased over the last decade, risk transfer capital has only
increased by $155B and therefore reinsurance rates are expected to continue its upward trajectory to account
for additional risk
In 2022, global reinsurance capital is expected to remain unchanged based on the insured losses thus far in
2021
Global Reinsurer Capital
$700
$650 $660 Global Reinsurer Capital
$625
$595 $605 Traditional Non-Traditional Total
$600 $575 $585
$565 Amount YoY% Amount YoY% Amount YoY%
$540
$505 Year ($B) Change ($B) Change ($B) Change
$500 2012 $461 8% $44 57% $505 11%
2013 $490 6% $50 14% $540 7%
2014 $511 4% $64 28% $575 6%
($ in Billions)
$400
$556 $563
$514 $516 $488
$530 2015 $493 -4% $72 13% $565 -2%
$511 $493 2016 $514 4% $81 13% $595 5%
$300 $490
$461 2017 $516 0% $89 10% $605 2%
$200 2018 $488 -5% $97 9% $585 -3%
2019 $530 9% $95 -2% $625 7%
2020 $556 5% $94 -1% $650 4%
$100
1H 2021 $563 1% $97 3% $660 2%
$81 $89 $97 $95 $94 $97
$44 $50 $64 $72 10-Yr CAGR 2% 8% 3%
$0
2012 2013 2014 2015 2016 2017 2018 2019 2020 1H 2021
Source: Aon Benfield
Source: Aon Benfield Non-Traditional Traditional
22
Risk Transfer Market Pricing
• While the global markets are improving, the Florida market is still experiencing dislocation due to litigation
and social inflation as well as continued adverse loss development
• There was increased capacity in the risk transfer markets in 2021 versus 2020
• In 2021, the traditional reinsurance market did not experience as great of a rebound as the capital markets,
capital market pricing was lower in 2021 than in 2020 and traditional reinsurance pricing was either
unchanged or experiencing minimal increases in the non-loss layers
• The overall pricing for U.S. Property Catastrophe risks in 2021 is near the risk transfer pricing levels in 2013
U.S. Property Catastrophe ROL Index - 2008 to 2021
• U.S. property catastrophe rates were on 115
the decline from 2012 to 2015 and
remained relatively flat until global events 105
including Hurricane Irma led to significant
losses from 2017 to 2019, which combined 95
with adverse loss development and
COVID-19 have contributed to continued 85
price increases each year from 2017
through 2021 75
• For 2022, rate increases of up to 10% with 65
most insurers in the 5%-10% range is
expected while Citizens’ rates are 55
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
expected to be unchanged to up to 5% Source: Guy Carpenter
higher
23
Contact Us
Barry Gilway, President/CEO and Executive Director
Barry.Gilway@citizensfla.com
(850) 513-3744
Christine Ashburn, Chief - Communications, Legislative and External Affairs
Christine.Ashburn@citizensfla.com
(850) 513-3746
Candace Bunker, Director – Legislative and Cabinet Affairs
Candace.Bunker@citizensfla.com
(850) 513-3757
24
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