Serving Florida s Surplus Lines Insurance Community

Transcription

1 Serving Florida s Surplus Lines Insurance Community

2 % 97.3% 98.64% 98.39% 98.51% 99.93% Q3 Q1 Q % 99.93% 99.9% Q Transactions without TIQs Transactions Submitted Timely % 80.21% 86.98% 86.75% 86.26% 81.55% Q3 Q1 Q % 81.84% 83.05% Q Accepted Submissions 99 Q3 Q1 Q3 1Q 2Q Affidavits Submitted Timely Q3 Q1 Q3 Q1 The information presented on this page is extracted from the Agent Report Card and is reflective of the average rates of compliance with selected reporting and regulatory requirements for all agents reporting business during the time frames presented. This information is current as of October 2, 2012.

3 Our Mission is to to fairly administer the collection of revenues, facilitate customer compliance and provide assistance and information regarding the placement and taxation of surplus lines insurance. 02 Marketplace Monitoring To ensure fairness and conformity with the law, the FSLSO monitors and evaluates agent, insurer and IPC data submissions in order to maintain the credibility and integrity of the surplus lines marketplace. Monitoring the marketplace occurs through several programs that have resulted in variances found in the data submissions. The Variance Analysis Program: Comparing data being submitted by surplus lines agents and independently procured coverage (IPC) filers with the data being submitted by surplus lines insurers, third quarter findings resulted in:» 57 unreported policies, with a total of $410,892 in taxes, service fees, assessments and penalty fees. The Agent Report Card: During the third quarter, there were 722 agents who received agent report cards representative to filings from the second quarter of The industry average of all four Agent Report Card categories for the quarter was 93.4%. Compliance Reviews:» The industry grade for the compliance reviews for the third quarter was 93% and the year-to-date grade was 93.4%.» During the third quarter, 25 surplus lines agents were charged a total of $35,156 in taxes, service fees, assessments and penalty fees on unfiled policies. Assistance During the third quarter, the FSLSO welcomed 28 new surplus lines agents who received our New Surplus Lines Agent package. There were 11 resident agents and 17 nonresident agents who were licensed and appointed. Outreach Providing outreach programs and initiatives that promote awareness of FSLSO s products and services designed to facilitate compliance with Florida s laws and regulations. During the third quarter, FSLSO staff participated in:» A meeting with the Department of Financial Services and the Surplus Lines Licensing Examination Committee in July where staff provided input and expertise relative to the review and development of test questions for Florida s Surplus Lines Licensing Exam.» The Florida Surplus Lines Association s (FSLA) annual convention in St. Petersburg where staff participated in convention activities; delivered a presentation detailing an overview of FSLSO s prior year s accomplishments and statistics relative to Florida s surplus lines industry and announced the release of the mobile FSLSO Tax/Fee/Assessment Calculator.» The National Association of Insurance Commissioners (NAIC) Summer National Meeting in September in Atlanta.» The National Association of Insurance Commissioners (NAIC) Zone Meeting in September in Kansas City.» A meeting with the Surplus Lines Law Group in Biloxi where staff participated in roundtable discussions regarding marketplace issues and current legislation affecting each state. Information Our vision is to be the definitive resource for the Florida surplus lines marketplace. As such, the FSLSO continues to provide

4 03 timely information to help our customers make sound and effective decisions. Key distribution venues for the third quarter included:» enews and ealert bulletins: One enews and two ealerts were distributed to various groups over the quarter including surplus lines agents, agency submission contacts, billing contacts, insurers and Independently Procured Coverage (IPC) filers. These news bulletins included articles relative to a clarification on the filing applicability of watercraft registration, the 2012 Continuing Education class, a Variance program milestone of half a billion dollars of discovered unfiled premium, an update on the use of Web Services to batch submit policies, the release of the mobile FSLSO Tax/Fee/Assessment calculator, and an update on Tropical Storm Isaac.» The Advisor Quarterly Newsletter: The Advisor was distributed electronically to surplus lines agents and subscribers and provided information regarding the repeal of the bond requirement, upcoming SLIP enhancements, a report on the Compliance Review activities in the 2nd Quarter, how to edit financial information in SLIP, what to expect from a Compliance Review, the necessity for vigilance when filing transaction information, the results of the 2012 FSLSO Annual Customer Survey as well as guidance regarding courtesy filings.» Website, Eight informational postings were made to the website s home page to help visitors find information relative to the move from FTP to XML batch filing, the release of the Surplus Lines Clearinghouse SLIP platform, a staff presentation at the FSLA convention, the release of the mobile FSLSO Tax/Fee/ Assessment Calculator, an update on Tropical Storm Isaac, the release of an OIR Informational Memorandum regarding losses due to Hurricane Isaac, the approval of policy removals from Citizens, and the approval of a Citizens surplus note depopulation plan. Education Education serves as the intermediary towards a credible insurance marketplace. Educational activities for the third quarter included: Three-hour C.E. Course entitled Building Florida s Property Insurance Industry: A Solid Foundation in the Admitted and Non-Admitted Market which took place on August 23rd in Boca Raton, FL with 23 participants. The overall class satisfaction score was a 4.79 out of 5. Industry Webinars» FSLSO Compliance Review: What to Expect and How to Prepare was held on September 27th with 20 participants. Online Training» The Pre-Licensing Course had 13 individuals register and 8 completed the course during the quarter.» FSLSO s three continuing education classes had two participants register and two complete courses. For more information, visit us at Use this valuable resource to expand your knowledge and awareness of Florida s surplus lines insurance marketplace.

5 Submission Comparisons Submissions Processed 3Q ,3 XML We b 04 Agents 2,359 72,051 Insurers 93 7,812 IPC 25 3,530 Total 2,477 83,393 YTD 6, ,017 Agent Submissions (Non IPC) 2,3 Transactions Policies 3Q , ,391 YTD 707, ,599 Premium Comparison 2,3 3Q 2012 YTD Agent Premium $606,621,119 $2,806,765,904 IPC Premium $22,853,612 $220,756,970 Total Premium $629,474,732 $3,027,522,874 Compliance Reviews 3 Reviews Done Policies Reviewed Transactions Reviewed 3Q ,118 2,374 YTD 313 6,803 7,699 Unfiled Transactions 3Q 2012 YTD # of Agents # of Unfiled Transactions Total Premium $511,125 $1,829,525 Taxes $20,447 $53,374 Tax Penalties $4,196 $11,443 Service Fee $467 $1,446 Service Fee Penalties $91 $332 Assessments $8,579 $20,538 Assessment Penalties $1,375 $4,004 1 For all submission comparisons, the transaction information in this quarterly report is extracted from data submissions received by surplus lines agents, independently procured coverage (IPC) filers and insurers. The submission information for surplus lines agents and insurers is based upon the submission date of policy transactions submitted for July 1, 2012 through September 30, Submission information for IPC filers is based upon the date the submission was imported into the FSLSO database for the timelines specified above. This information was current as of October 2, For all transaction, policy and premium comparisons, the transaction information in this quarterly report is extracted from data submissions received by surplus lines agents, independently procured coverage (IPC) filers and insurers. The transaction information for surplus lines agents, IPC filers, and insurers is based upon the effective date of policy transactions submitted for July 1, 2012 through September 30, This information was current as of October 2, 2012.

6 05 3Q 2012 Variance Analysis 3 YTD # of Unfiled Policies Premium Amount $7,289,672 $25,379,344 Taxes $268,707 $755,776 Tax Penalties $3,567 $11,435 Service Fee $5,647 $19,020 Service Fee Penalties $106 $587 Assessments $131,419 $412,092 Assessment Penalties $1,446 $8,378 Total Unfiled Policies Per Month 3 # of Unfiled Policies Premium Amount Taxes/Fees/ Assessments/Penalties July 26 $3,506,103 $203,149 August 23 $2,570,385 $154,099 September 8 $1,213,184 $53,645 3rd Quarter 57 $7,289,672 $410,892 YTD 782 $23,930,344 $1,207,287 3 All figures have been rounded to the nearest dollar amount. These figures were current as of October 2, For all Market Data Reports, the policy premium information in this quarterly report is extracted from data submissions received by surplus lines agents and independently procured coverage (IPC) filers. The policy information is based upon the effective date of policy transactions submitted for July 1, 2012 through September 30, This information was current as of October 2, Insurer Actions» GuideOne National Insurance Company The Florida Office of Insurance Regulation notified FSLSO on 7/09/2012 that this insurer has been approved to write all lines of business for which the applicant is eligible to write pursuant to the Surplus Lines Law.» Ariel Reinsurance Company LTD The Florida Office of Insurance Regulation notified FSLSO that the company has been removed from Florida s eligibility list by Consent Order.

7 Market Data 4 06 Top 10 Insurers By Premium Amount Total Premium 3Q 2012 YTD Rank 1 Lloyd s Underwriters At London $142,308, QBE Specialty Insurance Company $40,488, Lexington Insurance Company $34,981, Scottsdale Insurance Company $34,483, Landmark American Insurance Company $25,021, Voyager Indemnity Insurance Company $15,897, Geovera Specialty Insurance Company FKA USF&G $12,646, Arch Specialty Insurance Company $11,952, Westchester Surplus Lines Insurance Company $11,836, Ironshore Specialty Insurance Company $11,242,950 9 Total Premium by Top 10 Insurers $340,859,393 Top 10 Coverages By Premium Amount Total Premium 3Q 2012 YTD Rank Commercial Property $223,399, Commercial General Liability $99,363, Commercial Package (Property & Casualty) $56,852, Homeowners-HO-3 $36,195, Miscellaneous E&O Liability $17,514, Excess Commercial General Liability (Not Umbrella) $12,674, Miscellaneous Medical Professionals $11,628, Miscellaneous Liability $9,267, Dwelling Property $8,415, Condominium Package (Commercial) $8,261,513 9 Total Premium by Top 10 Coverage Codes $483,572,522 Website Data Top Content Pages 3Q 2012 YTD Tax/Fee/Assessment Calculator 35, ,551 Zip/County/City Search Tool 22,286 61,961 Main Page 15,655 52,240 Staff Contact Information 1,647 5,591 Active Florida Surplus Lines Agents & Agencies 1,372 3,980 Top Landing Pages 3Q 2012 YTD Main Page 11,579 38,267 Tax/Fee/Assessment Calculator 9,240 28,396 Zip/County/City Search Tool 3,865 11,584 Eligible Surplus Lines Insurers 543 1,628 Active Florida Surplus Lines Agents & Agencies 505 1,775 Number of Visitor Sessions 3Q 2012 YTD 38, ,279

8 Florida Surplus Lines Service Office 1441 Maclay Commerce Drive Ste. 200 Tallahassee, FL (phone) (fax) The Florida Surplus Lines Service Office provides this data for informational purposes only; it does not constitute an endorsement for any service, company or person offering any product or service.