Two Florida insurance companies are seeking rate hikes of over 50% over spiraling costs and surging claims.
Castle Key (a subsidiary of Allstate) and Amica Mutual Insurance had hearings with the state’s Office of Insurance Regulation (FLOIR), overseen by a Commissioner Michael Yaworsky, appointed by Governor Ron DeSantis. They lobbied for increases exceeding 50 percent arguing operating losses mount due to payouts that far exceed premiums collected.
Amica maintains that its operational losses exceed the premiums collected, leading to a reported loss ratio of 337 percent. In other words, for every dollar of premiums received, roughly $3.37 is spent on operational expenses.
Such figures, Petraca contended, necessitate substantial rate adjustments to ensure continued coverage for Florida’s homeowners.