Coral Gables, December 22, 2023SL FINANCIAL is an actuarial consulting and advisory firm based in Miami, Florida. We offer actuarial consulting and advisory services for businesses and governments in both traditional (re)insurance and alternative risk financing industries.


In Florida’s intricate insurance landscape, rate filings play a crucial role in maintaining financial stability for insurers and ensuring fair premiums for policyholders. This article will delve into recent insurance reforms aimed at stabilizing the Florida insurance industry. To understand recent major rate filing reforms in Florida, let’s focus on a few key pieces of legislation: House Bill 1A (HB 1-A) and Senate Bill 2A (SB 2-A) passed in December 2022; and House Bill 837 (HB 837) and Senate Bill 7052 (SB 7052) passed in March and June 2023 respectively.


A summary of key provisions of the successive reform bills is presented below:


HB 1-A: Fraud and Abuses

  • Fraud Crackdown: Harsher penalties for insurance fraud, like fake claims and staged accidents, to curb costs.
  • AOB Regulation: Tighter rules on assigning claims to contractors, aiming to prevent abuse and lower rates.
  • Attorney Fee Adjustments: Modifications to attorney fee structures in insurance lawsuits, potentially reducing litigation costs.


SB 2-A: Property Insurance

  • Reinsurance Access: Creates the Florida Optional Reinsurance Assistance (FORA) program, offering insurers optional hurricane reinsurance at market rates.
  • Claims Process Changes: Bans assignment of benefits (AOBs) for claims after January 2023, limits attorney fees, and allows optional binding arbitration clauses in policies.
  • Citizens Property Insurance Corporation: Consolidates Citizens' three (3) accounts into one, revises policyholder surcharges, and mandates flood insurance for Citizens’ coverage.
  • Tort Reform Measures: Includes provisions like limitations on attorney fees, medical damages, and bad faith insurance claims, aimed at reducing litigation costs.


HB 837: Tort Reform

  • Fairer Lawsuits: Shifts to "modified" comparative negligence, where plaintiffs at fault for more than 50% cannot recover damages.
  • Faster Claims: Two-year limit for most negligence lawsuits encourages quicker evidence gathering.
  • Reduced Medical Expense Claims: Only actual payments count, not inflated bills.
  • Bad Faith Protection: Insurers offering prompt settlements protected from lawsuits.


SB 7052: Insurer Accountability

  • Cancellation: No cancellations during active claims or 90 days after hurricane repairs.
  • Insolvency: Citizens covers open claims under insolvent insurers.
  • Roof Deductibles: One deductible applies to all losses from a covered peril.
  • Rates & Discounts: Reflect recent reforms and update mitigation discounts in rate filings.


Navigating Florida's New Insurance Landscape: How SL FINANCIAL Helps Carriers Thrive

As Florida's insurance industry adapts to historic reforms, actuarial expertise takes center stage. SL FINANCIAL, a trusted presence in the Florida market for years, is at the forefront, helping carriers, brokers, and reinsurers navigate these dynamic tides.


Our Focus: Decoding Rate Filings in the Post-Reform Era

Since July 1st, 2023, our team of seasoned actuaries has been diligently analyzing rate filings submitted after this pivotal date. Our mission? To understand how these filings account for the combined effect of these reforms, empowering clients to make informed decisions in this new environment.


Unveiling Insights, Unlocking Opportunities

Our analysis of thirty (30) post-reform rate filings yielded several key insights:

  • Savings Potential: Roughly half of the filings clearly estimated future savings arising from the reforms. This suggests many insurers are confident about the positive impact on their bottom line.
  • Methodology: Common methods involved analyzing claim frequency and severity for litigated claims and/or Assignment of Benefits (AOB) cases, then estimated adjustments based on specific reform provisions.
  • Expert Judgment: As always in actuarial work, professional judgment played a crucial role, considering data credibility and external market forces.
  • Impact Range: Adjustment factors varied from 0.868 to 0.995, with a few outliers at 1.000 due to data limitations. This indicates insurers foresee differing impacts depending on their unique portfolio and chosen methodologies.

These findings highlight the ongoing evolution of the insurance landscape in Florida. While some insurers project clear savings, others are taking a more cautious approach. Understanding these diverse interpretations empowers clients to thrive in the evolving post-reform market.


SL FINANCIAL: Your Partner in Post-Reform Florida

With a proven record of success and a keen understanding of the evolving regulatory landscape, SL FINANCIAL is your trusted partner in navigating the new reality of Florida insurance. We offer a comprehensive suite of services, including:

  • Rate Filing Support: Expert guidance on crafting compliant and competitive rate filings.
  • Actuarial Consulting: Data-driven insights to optimize risk and pricing strategies.
  • Regulatory Compliance: Streamlined processes to ensure adherence to regulations.

Ready to chart your course in the new Florida insurance landscape?

For any question or media inquiry, please visit our website at www.sl-financial.com or contact our team at that ceo@sl-financial.com.




Achille Sime




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437 Bird Road
Coral Gables, FL 33146
    Achille Sime

    Fellow of the Institut des Actuaires France (FIAF)
    Fellow of the Society of Actuaries (FSA)
    Member of the American Academy of Actuaries (MAAA)
    Chartered Enterprise Risk Analyst (CERA)
    Affiliate of the Casualty Actuarial Society (AFFI CAS)