UPC Insurance Insolvency & Reinsurance Rates
Higher Re-Insurance Costs = Higher Premiums for 2013
UPC Insurance Insolvency
United Property & Casualty Insurance Company (UPC) of St. Petersburg has become the seventh Florida domestic insurance company to become insolvent in the past 13 months. UPC went into a regulated policy run-off this past December with another carrier picking up 72,000 of its 135,000 policies since then. But on February 10, UPC announced claims from Hurricane Ian had taken a heavier toll than expected, increasing from an original estimated $1 billion in gross losses to $1.54 billion by the end of 2022. Regulators last Thursday began proceedings to place UPC into receivership, noting the company has had net underwriting losses of more than $35 million each year since 2017.
Higher Re-Insurance Costs = Higher Premiums for 2013
UPC is declared insolvent by state regulators, expectations of up to a 50% increase in reinsurance costs for the rest of the market’s carriers at June renewal, concerns that higher premiums will force condo owners out of their homes.
ReInsurance Rate May Jump 40% to 50%
UPC had been in a policy run-off because it couldn’t find reinsurance for the 2023 hurricane season that starts June 1. Much of its extra $540 million in Ian losses reportedly will be covered by reinsurance. For Florida carriers -despite the two new reinsurance programs the legislature created in its 2022 property insurance market reforms- Florida property reinsurance rates are expected to jump 40% to 50% in June 2023.
Behar Insurance There are still options in the market. Make sure that you call Behar insurance for your clients insurance needs, we will work with you and your client and we will make sure that you're closing that's not delay because of insurance.
Fill out the Real Estate Professional insurance request form here. Mortgage Broker Online HOI Request Form is available here.
