march 2008 firm townhall meetings prepared by the grassroots organization firm fair insurance rates...
TRANSCRIPT
March 2008 FIRM Townhall MeetingsPrepared by the Grassroots Organization FIRMFair Insurance Rates in Monroe March 2, 2008
April 21, 2023 Slide 2
Agenda
Welcome Background Accomplishments Work in Progress 2008 Challenges Task Force on Citizens Claims Handling and Resolution Statewide Windstorm Mitigation Advisory Committee 2009 Changes in Windstorm Eligibility Questions & Answers Conclusion
April 21, 2023 Slide 3
Background – What’s FIRM? Grassroots group founded in February 2006 Grown from 32 neighbors in Key West to 5,000
members Keys-wide Run by volunteers and funded by donations 501(c)(6) organization
Not-for-profit, but donations are not tax-deductible Allows us to lobby
OUR MISSION: “To advocate for, promote and encourage the promulgation of fair, impartial and actuarially sound windstorm insurance rates for owners of commercial and residential properties within the geographic boundaries of Monroe County, Florida.”
April 21, 2023 Slide 4
Accomplishments
Brought attention to statewide windstorm insurance crisis Successfully challenged Citizens Property Insurance
Corporation (CPIC) 2006 rate filings which would have produced rates in excess of $30/$1,000 of coverage for Keys property owners.
Convinced Office of Insurance Regulation to roll-back Monroe County rates by 32% (effective rate = $13.58/$1,000 of coverage. (expires 1/1/09)
Worked with a coalition of consumer groups around the state for insurance reform
April 21, 2023 Slide 5
Accomplishments (continued)
Influenced pro-consumer legislation of January 2007 which: Froze windstorm rates state-wide (expires 1/1/09) Repealed “use and file” statutes (expires 1/1/09) Strengthened the Florida Building Code and elimination of
exemptions Mandated CPIC claims resolution within 90 days of filing Provided for quarterly and bi-annual premium payment options
Created strong working relationships with the Office of Insurance Regulation and key legislators in Tallahassee
April 21, 2023 Slide 6
Current Projects
Address increasing premiums for condominium associations Completed comparative data analysis regarding
RatesActual damages
Delivered analysis to the office of the state Consumer Advocate on Insurance Issues and requested an actuarial analysis
Beginning to collect and analyze data on commercial-commercial properties
April 21, 2023 Slide 7
Insurance Commissioner McCarty’s order to roll-back Monroe County windstorm rates expires at midnight on New Year’s Eve.
CPIC has filed a preliminary rate analysis suggesting that, once again, Monroe County will be faced with an increase in our rates of between 91% and 123%.
2008 Challenges - Rates
April 21, 2023 Slide 8
The rate range varies based on whether reinsurance is acquired primarily through the Florida Catastrophe Fund or through private reinsurance sources.
It is unclear to what base rate CPIC will apply these percentage increases.
This is a preliminary analysis, not a rate filing.
Notes on CPIC Rate Analysis
April 21, 2023 Slide 9
Possible 2009 Rate Changes per CPIC Analysis
From CPIC Personal Lines Rate Analysis of December 2007
+3% to +31%+3% to +31%
+12% to +105%+12% to +105%
+54% to +97%+54% to +97%
+21% to +79%+21% to +79%
-7% to +75%-7% to +75%
+17% to +55%+17% to +55%
-9% to +95%-9% to +95%
-9% to +28%-9% to +28%
+91% to +123%+91% to +123%
+7% to 31%+7% to 31%
+10% to +88%+10% to +88%
April 21, 2023 Slide 10
Household Impact of Indicated CPIC Rate Changes in Monroe
From CPIC Personal Lines Rate Analysis of December 2007
$3,242
$6,225$7,229
$0$1,000$2,000$3,000$4,000$5,000$6,000$7,000$8,000
At Current Rate With 91%Increase
With 123%Increase
Weighted Average Premium per Household
April 21, 2023 Slide 11
Economic Impact of Indicated CPIC Rate Changes in Monroe These increases would equate to a
considerable loss of disposable income for Monroe property owners annually:At 91%, we’d lose $77,720,000At 123%, we’d lose $102,542,000
From CPIC Personal Lines Rate Analysis of December 2007
April 21, 2023 Slide 12
Potential Average Premiums in Comparable HRA Counties
From CPIC Personal Lines Rate Analysis of December 2007
$2,765
$2,947
$3,937
$3,288
$1,791
$2,249
$2,583
$6,225
$3,662
$1,624
$1,439
$3,663
$5,394
$5,537
$7,045
$2,278
$3,328
$3,162
$7,229
$4,685
$3,056
$1,830
$0 $2,000 $4,000 $6,000 $8,000
BrevardBroward
CollierDadeDuval
EscambiaFranklinMonroePinellas
SarasotaVolusia
Low-end High-End
April 21, 2023 Slide 13
Again, Monroe County would pay the highest rate in the state for windstorm insurance.
The same rationale for disapproving the last rate increase stands today: Monroe has had the toughest building code in the state for the
longest period of time. Key West in particular has a history of sturdy construction and
buildings that have withstood storms for over a hundred years. Unlike other HRA areas, our diminishing population and tough
development regulations limit the growth of exposure for CPIC. Actual CPIC experience confirms that losses per claim in Monroe
County are less than in other high risk areas of the state.
FIRM Analysis of CPIC Rate Analysis
April 21, 2023 Slide 14
Insurance Claims Per Policy in Force in Selected HRA Counties
CountyCitizens
Policies in Force (HRA)
StormCitizens
Windstorm Claims
Wind-strength Relativity
Claims Paid per Policy
Monroe 24,632 Katrina $22,542,608 baseline $915
Palm Beach 58,352 Katrina $120,286,077 similar $2,061
Collier 9,388 Katrina $31,582,635 similar $3,364
St. Lucie 1,652 Katrina $9,220,467 lower $5,581
Monroe 24,632 Wilma $22,927,392 baseline $931
Dade 85,270 Wilma $198,031,608 similar $2,322
Property damage per insured property from the same storms is lower in Monroe than elsewhere in Florida. Wilma and Katrina are prime examples.
TO READ: In Katrina, wind strengths were lower in St. Lucie County than Monroe County, and Citizens windstorm claims paid were higher.
SOURCE: Citizens Property Insurance and the National Weather Service
April 21, 2023 Slide 15
FIRM Action Plan on Monroe County Rates Prepare an analysis of the CPIC rate analysis and share with
OIR, the Consumer Advocate and key legislators (DONE). Continue to build our database of information regarding rates,
meteorological predictions and Monroe building conventions. Monitor all filings from CPIC. Mobilize residents in letter-writing and petition-gathering
campaigns when the time is right. Lobby the County and municipalities to again retain the
services of an actuary and an attorney to represent Monroe in a challenge to the rate filing if necessary.
April 21, 2023 Slide 16
2008 Challenges (continued)
Permanently sustaining the repeal of “use and file” Encouraging greater transparency from CPIC, the quasi-
governmental agency, in: Rate-setting Underwriting Billing
Building the Florida Catastrophe Fund, possibly through earmarking a portion of the post-storm windfall sales tax revenues for the purpose
Abolishing “PUP” companies Creating a consistent source of funding for hardening our homes Ensuring accurate assessment of building strengths and proper
allocation of mitigation credits.
April 21, 2023 Slide 17
Analyzed outstanding claims from 2004/2005 season Encouraged by these actions from CPIC:
Tremendous expansion of adjusting staff Implementation of mobile disaster response units Electronic document handling Redundancy in call service centers Improved customer website Outside adjuster training programs already in place Insurance agent training programs to launch this quarter Direct communication between agents and underwriters
Drafted legislation to train and license public adjusters and umpires
Investigating the wind-driven rain exclusion
April 21, 2023 Slide 18
Windstorm Mitigation Advisory Committee Newly formed statewide committee to:
Analyze results of a mitigation credit survey prepared by modeler ARA
Provide recommendations about building conventions, construction and wind mitigation techniques, and the appropriate allocation of mitigation credits
FIRM Board Member and Key West City Engineer Annalise Mannix appointed to the committee
April 21, 2023 Slide 19
Changes in Eligibility Requirements from CPIC Mandated by the legislature in the 2007 special session As of January 1, 2009, you may not be eligible for
windstorm insurance from CPIC if you: Have a home with an insured value of over $1,000,000 Have a home with an insured value of over $750,000 and
DO NOT have shutters• CPIC is clarifying whether this applies to Class A, B or C
shutters, impact-resistant windows and plywood
Build a home within 2,500 feet of the coastline that does not meet FBC code-plus standards
April 21, 2023 Slide 20
FIRM Activity
Be prepared for CPIC rate filing for 2009 Stay abreast of proposed legislation in this session Lobby for permanent repeal of “use and file” Maintain a presence in Tallahassee during the
session to counter insurance industry lobbying efforts
Build letter-writing campaigns in support of legislation that will benefit consumers
April 21, 2023 Slide 21
Wait – there’s more!
Condominium and Commercial Rates Federal Catastrophe Insurance Mitigation Education Continued Improvement in Citizens
April 21, 2023 Slide 22
What you can do for FIRM Make sure all your friends are FIRM members. Donate money. Remind your representatives that voters elect
them, not insurance companies. Volunteer – we need more bodies! Come to our Happy Hour on April 11 from 4 to
8pm at the Southernmost Beach Café in Key West.
April 21, 2023 Slide 23
What you can do for FIRM (continued)
Stay informed. Watch, read, listen to the media. Visit our website regularly: www.FIRMkeys.org. Read your e-mails. Find out where the candidates stand on insurance
issues before you vote for them. Vote in our upcoming FIRM Board elections.
April 21, 2023 Slide 24
FIRM Board Slate
Michele Beach, Owner of The UPS Store and Tropical Arts & Crafts Supplies, Key Largo Heather Carruthers, Co-owner of Pearl’s Rainbow Resort, Key West Nat Cassel, Assistant Monroe County Attorney, Ramrod Key Cindy DeRocher, FIRM Co-founder and General Manager of the Gardens Hotel, Key West Robbie Hopcraft, Mortgage Broker and Owner of Best Rate Lending Services, Key West Teri Johnston, Co-owner of Affiliated Design & Construction and City Commissioner, Key West Kim Mack, Financial Consultant, Key West Annalise Mannix, P.E., City of Key West Environmental Programs Manager, Key West Mel Montagne, Commercial A.E. and Branch Manager, Keys Insurance Services, Marathon Donna Moody, FIRM Co-founder and Retired Landscaper, Key West Colleen Repetto, Treasurer, Coldwell Banker Schmitt Charitable Foundation, Marathon Al Sachs, Retired Aeronautical Engineer, Key West Gary Sechen, Chief Financial Officer, Key West Bank, Key West
April 21, 2023 Slide 25
What YOU can do for You - MITIGATION
Mitigation factors all work together to save you money. There are four significant factors that can reduce your premium:
Shutters. Class A, B or C shutters can save you up to 33%.
If your home is compliant with the current Florida Building Code, either through new construction or renovation, you may be able to save up to 45%.
April 21, 2023 Slide 26
What YOU can do –
MITIGATION (continued)
Roof Discounts. How your roof is connected to your walls can save
you money. Hurricane straps are a big help.
April 21, 2023 Slide 27
What YOU can do –
MITIGATION (continued)
Roof Discounts. How your roof is covered can also
save you money. A small mitigation credit is available for metal roofs.
However, there is no pre-designated space on insurance applications to account for these discounts. Ask your agent to make a special note if you have a sheet metal roof to qualify for a discount.
FIRM continues to advocate for greater discounts for metal roofs due to their superior performance.
April 21, 2023 Slide 28
What YOU can do –
MITIGATION (continued)
Construction. A hip roof may save you up to 23%.
SIMPLE HIP ROOFA gable roof with the ends
brought together at the same pitch as the rest of the roof.
PYRAMID HIP ROOFA hip roof built on a square
base with eaves of the same length.
April 21, 2023 Slide 29
Send Information to:
FIRM
PO Box 5882
Key West, Florida
33045-5882
April 21, 2023 Slide 30
E-Mail/Fax Information to:
Fax: 305-296-4867
April 21, 2023 Slide 31
Get Information at:
www.FIRMkeys.org
April 21, 2023 Slide 32
Closing Remarks
We have proven that we do have a voice and can make an impact.
Stay active, educated and involved. This fight is FAR from over. Thanks for taking the time to join FIRM this
evening.