Florida’s insurance regulator has championed the arrival of new startups in the state, but the industry’s most weathered insurance executives — the ones who have survived multiple market crises — know the hazards posed to the market by that growing class of newcomers.
Geographic concentration in a high-risk state doesn’t bode well for reinsurance — the insurance for insurance companies that is essential for their ability to handle losses after a catastrophe event.
“If you can’t put reinsurance together, then you can’t be viable as an insurance company. You can’t make the numbers work,” said Oscar Seikaly, CEO of Miami Lakes-based NSI Insurance.
Read the full Tampa Bay Business Journal article here.
