|
All Regions - |
 |
|
News For Your Web Site |
|
|
Untenable Insurance Market Conditions in Florida Force USAA to Restrict New Business. USAA is the Last Major Insurer to Limit Exposure in the State; Active Military Exempted |
|
- SAN ANTONIO -- USAA today announced that, effective immediately, it will significantly restrict the number of new homeowner, fire, and renter insurance policies it sells in Florida. USAA will only sell new homeowner or renter insurance policies for the primary residences of active military members required to move to the state pursuant to military orders. USAA will continue to underwrite a member’s primary residence in Florida, as long as it is currently insured by USAA. USAA also will underwrite one existing homeowner, fire, or renter policy in Florida for members whose primary residence outside of Florida is insured by USAA.
"We regret that we have been forced into this position, but recent legislative and regulatory actions in Florida leave no other option," said USAA Chairman and CEO Bob Davis. "We find ourselves in an untenable insurance market, where we are not allowed to charge the appropriate amount for the risk the association bears on behalf of our Florida members. If we do not take immediate action to limit our exposure to loss, we risk jeopardizing the viability of our entire association, and the financial security of all those we serve -- the men and women of the U.S. military and their families."
Over the past 10 years, USAA has paid approximately $220 million more in Florida homeowner insurance losses and expenses than it has collected in premiums. Florida property policyholders account for 49 percent of USAA's exposure to natural disaster risk, yet make up only 9 percent of USAA policyholders, who pay 12 percent of USAA’s property insurance premiums.
With more than $2 trillion in coastal property exposed to the risk of catastrophic hurricanes -- and a history of frequent, strong storms across the state -- Florida has the most challenging property insurance market in the country. USAA believes that Floridians would be better served by a thriving private insurance market, combined with responsible public policies that enable a viable free-enterprise economy and intelligent land use.
"If the Florida insurance market becomes more rational in the future, we will most certainly reconsider our position," said Davis. "But under current circumstances, it would be irresponsible to continue to put our entire association at risk."
USAA will continue to provide auto insurance, life insurance, banking, and investment products to its members in Florida, as long as the state permits it to do so.
About USAA
USAA, a diversified financial services company, is the leading provider of competitively priced financial planning, insurance, investments, and banking products to members of the U.S. military and their families. The company's 5.9 million members rely on the convenience and accessibility of USAA financial products backed by industry-leading service. For more information about USAA, or to learn more about membership, visit usaa.com.
|
Posted on:
Thursday, April 12, 2007 04:04 AM |
 |
 |
|
|
|
.gif&contenttype=gif "Click here")
Home
