Citadel moving its headquarters to Miami

[BRU67]

Originally Posted by BigLake

This is seriously -- and significantly-- bad news for Florida. FL just passed HB 837 to get a handle on insurance litigation -- a good step -- but the issue with rising insurance rates is beyond bad news for Florida. Residents are paying literally multiples more in homeowners insurance costs than other states, and there is no ready remedy at hand. In fact, it will get worse as insurance capacity becomes more constrained and hurricanes (flooding/storm surge) increase due to climate change. I won't point out the obvious, but it's coming. Unfortunately.

This will help, but the underlying problem of hurricanes and weather events still exists. Insurers are easily spooked and will pull out of markets, as us building owners in Chicago learned to our chagrin after the 2020 riots. Many carriers just pulled out of the market. And when that happens, "supply" shrinks and premiums shoot through the roof (pun intended haha).

[BigLake]

Originally Posted by BRU67

This will help, but the underlying problem of hurricanes and weather events still exists. Insurers are easily spooked and will pull out of markets, as us building owners in Chicago learned to our chagrin after the 2020 riots. Many carriers just pulled out of the market. And when that happens, "supply" shrinks and premiums shoot through the roof (pun intended haha).

A lot of small insurance outlets dropped out of FL. Farmers just announced it was leaving and Bankers Insurance and Lexington Insurance left previously.

[Cool Arrow]

Originally Posted by BigLake

A lot of small insurance outlets dropped out of FL. Farmers just announced it was leaving and Bankers Insurance and Lexington Insurance left previously.

AAA also cancelling a lot of policies

[bale002]

There is no increase in the number of hurricanes that makes landfall in Florida. In my particular region, we have not experienced a hurricane since 2017.

The problem is the increase in population density, especially along the coasts, and so also in the total value of all construction, since 2004, since 2011, since 2021, since yesterday, and still increasing.

As a result it takes just one hurricane in one region of the State to cause multi-billion dollars in damage. Last year it fell in certain areas in the southwest coast for the first time in a century, that’s is one hundred years, one hurricane in those few spots in 100 years.

But since the insurance pool is the entire State, and in view of very high replacement costs, everyone in the entire State is impacted.

By the way, new construction has been booming in those very spots, as well as elsewhere in the State, but not fast enough to easily accommodate everyone who wants to live here.

By the way, many insurers are no longer writing policies in or are leaving California, albeit for different reasons, but it still comes down to replacement costs in current economic conditions.

[BigLake]

Originally Posted by bale002

There is no increase in the number of hurricanes that makes landfall in Florida. In my particular region, we have not experienced a hurricane since 2017.

The problem is the increase in population density, especially along the coasts, and so also in the total value of all construction, since 2004, since 2011, since 2021, since yesterday, and still increasing.

As a result it takes just one hurricane in one region of the State to cause multi-billion dollars in damage. Last year it fell in certain areas in the southwest coast for the first time in a century, that’s is one hundred years, one hurricane in those few spots in 100 years.

But since the insurance pool is the entire State, and in view of very high replacement costs, everyone in the entire State is impacted.

By the way, new construction has been booming in those very spots, as well as elsewhere in the State, but not fast enough to easily accommodate everyone who wants to live here.

By the way, many insurers are no longer writing policies in or are leaving California, albeit for different reasons, but it still comes down to replacement costs in current economic conditions.

this is pretty accurate. Severity, not frequency and the target-rich environment (that's not a sensitive term, but it is industry jargon).

[wjj]

Originally Posted by BigLake

this is pretty accurate. Severity, not frequency and the target-rich environment (that's not a sensitive term, but it is industry jargon).

If by severity you mean intensity, that is not true. The National Hurricane Center tracks US landfalling major hurricanes with data going back to the 1850s. In the last decade 2011-2020), only four major hurricanes made landfall in the US. That is the lowest number since the 1860s though there were three other decades where only four major hurricanes made landfall in the US (1970s, 1900s, and 1880s). The average number of major hurricanes per decade making landfall in the US from 1851 through 2020 is 5.3. The average number of major hurricanes per decade making landfall in the US the last five decades (1971 - 2020) is 5. A slight downward trend but basically flat over 170 years.

You are spot on about there being a target rich environment today that did not exist even 30 years ago.