From May 2024 News & Notes

In times like these, the stability of your insurance companies is critical. The pandemic challenged every aspect of the fraternal community. Both your insurance companies and MJ Sorority, as your insurance agent, made significant concessions to help alleviate some of the pressures your organizations have faced.

The insurance industry went from the chaos of the pandemic to the chaos of the effects of climate change, specifically the catastrophic weather events we’ve experienced over the last several years. Insurance coverage and policy terms and conditions are on a collision course with the changing climate in many states, most notably in Florida and Louisiana. The seriousness of changing climate patterns is further compounded by the fact that in Florida’s southwestern coastline, sea levels have risen eight inches since 1950, and the risk of storm surge is estimated to double by 2030. Louisiana’s coastline is facing a similar risk. Florida is by far the most worrisome for standard property insurance companies. Several insurance companies providing property insurance in the state have gone insolvent despite state and industry efforts to prevent insolvency. To stabilize the insurance market, the Florida state government began the Florida Hurricane Catastrophe Fund in 1992. The Fund reimburses insurers for a percentage of catastrophic hurricane claims. Insurers of last resort were formed and in 2002, both carriers merged to become Citizens Property Insurance Corporation. Some additional insurance capital (or capacity) is returning to Florida in 2024, however, this has not provided much, if any, relief to consumers trying to find insured coverage for their property.

As we’ve discussed repeatedly in this newsletter, the property insurance market has been chaotic for several years. Recently, the MJ Sorority program has experienced rate increases and changes in wind and hail property deductibles in certain parts of the country.

It’s natural to feel that these changes suggest your insurance companies are abandoning the program. However, these actions are actually positioning the program for a stable future.

Without the stability of the MJ Sorority program and our partnering insurance companies, your insurance coverage would be far more vulnerable. The saying, “you get what you pay for,” is especially true for the insurance program provided by MJ Sorority. Otherwise, you risk compromising your crucial protection.

Should you wish to discuss the property insurance industry concerns further, please do not hesitate to contact us.

In the News 
The property insurance crisis has been making headlines outside of your typical insurance industry publications. To learn more, we recommend the following: