Florida P&C litigation comparatively flat, however AOB claims rising: CaseGlide

Newly litigated property insurance coverage claims at Florida’s largest P&C insurers proceed to be comparatively flat, with the quantity fluctuating between 4,000 and 4,700 monthly to date in 2022, based on the newest information from CaseGlide.

In July 2022, CaseGlide counted 4,091 newly litigated claims from Florida’s P&C insurer cohort, which is a roughly 4% drop from June’s determine of 4,261.

However June’s determine was over 5% up on Might, reflecting the month-to-month fluctuation that’s being seen.

Total, CaseGlide stated that July’s determine, “continues a comparatively flat sample of recent litigated claims quantity between 4,000 and 4,700 since January 2022.”

Out of the 16 largest Florida insurers that CaseGlide frequently screens, 5 recported a month-over-month improve in newly litigated claims in July, with one exhibiting a rise of 29% month-over-month and the remaining 4 exhibiting will increase between 1% and 11%.

Once more, that reveals the distinction in expertise being seen, which suggests litigation just isn’t but seeing any form of significant decline in Florida’s property insurance coverage market, regardless of the legislative actions taken during the last 12 months or so.

Of 9 insurers that reported month-over-month declines, six had been lower than 15%, three had been between 30% and 50%, and one, Southern Constancy, produced no new litigated claims as they had been declared bancrupt in June. One further insurer confirmed no achieve or loss for the month, CaseGlide stated.

Notices of Intent to Provoke Litigation (NOIs), which is usually a signal of forward-trends in litigated case charges, dropped barely month-over-month from 3,045 in June to 2,986 in July.

There could also be an early signal of a flatlining of litigated claims, with maybe some decline to come back. However even when that does occur, the precise month-to-month numbers wouldn’t be anticipated to be far beneath what we’re seeing at present anyway.

Actually not the wholesale quashing of insurance coverage litigation practices that Florida’s market actually must see.

As soon as once more although, probably the most regarding statistic for insurance coverage and reinsurance markets is expounded to the proportion of recent litigated instances that function an project of profit (AOB) declare.

AOB instances as a share of complete new litigated instances rose once more in July to 41%, up from 36% in Might, and 38% in June.

At the moment, CaseGlide stated that AOB percentages of recent litigation are literally larger than at any time previously 18 months, which may very well be regarding for the quantum of claims that are available in, as AOB can lead to larger claims and due to this fact larger loss prices for insurance coverage and reinsurance pursuits.

With AOB charges accelerating, as a share of complete claims, it does increase the query whether or not contractors and attorneys are profiting from the legislative surroundings in Florida’s property insurance coverage market earlier than any additional motion is taken by lawmakers to quell fraud and litigation charges.

Lastly,CaseGlide stated that Miami-Dade County continues to be the state chief in share of recent litigation at 25%, adopted by Broward County at 16%, Orange County at 7%, Palm Seaside County at 7% and Hillsborough County at 6%.

Learn all of our information and evaluation on the Florida insurance coverage and reinsurance market.