Why Florida Insurance Is So Expensive And What’s Changing

Brian Remer (0:00)

We're in a highly volatile market. You've seen pricing change over the last seven years, where it's increased dramatically for a period of time, then it plateaued, and now you're seeing sharp decreases.

Moshe Popack (0:12)

So when you actually peel back the layers, with the amount that the premium is increasing, it just seems that it's maybe just pushing the envelope.

Brian Remer (0:21)

That part of the supply chain is the most consolidated. Like in an oligopoly where you only have a few vendors that can supply something, they're able to control the pricing more. And if you fail and your contingency plan fails, people are relying on those professional services can't operate, that's going to become a massive claim.

Paul Remer (0:39)

Yeah, it's paramount. It's really everything, right? And core value of ours is honoring relationships, doing the right thing.

Moshe Popack (0:51)

Welcome to Common Denominator. Really good to have you, Brian, Paul, Remer, Remer Insurance. So I always think I see two brothers sitting here, and it's just in my mind, because I'm one of five boys.

And I know that me and my brothers, we used to fight all the time, all the time. And now you guys work together. That's one dynamic. I work with my wife, which is another dynamic. Did you guys always get along as children?

Paul Remer (1:22)

I would say I bullied him a little bit.

But right now, that's evolved into a best friendship. And especially with brothers with complimentary skill sets, we really complement each other in the business, out of the business, and it creates a really good working relationship that's built on trust, loyalty, and always doing the right thing.

Moshe Popack (1:42)

People talk about the Florida market and insurance is number one topic. How does building relationships and what does it look like to build relationships?

How has that helped you in your business?

Paul Remer (1:55)

Yeah, it's paramount.

It's really everything, right? And core value of ours is honoring relationships, doing the right thing. And that's not just from an agency to carrier perspective, it's also to the employees as well, making sure that they have what they need to be successful, and that we're there to support them on a carrier perspective. And all the carrier relationships that we have that allow us to put our clients in the best position is built on transparency and giving them all the information that they need to make educated decisions. So there's so much communication going on that is built on relationships, getting the right information from a client, passing that along to the carrier, making sure that they understand that nobody's misrepresenting everything. Those relationships are built on trust, built on repetitions that we've built over time.

Moshe Popack (2:50)

Every room that I'm in, the conversation always goes back to property tax here in Florida, and it goes back to insurance costs. What would you say is the main issue with insurance costs, and what are potential solutions, I would say, statewide within Florida?

Brian Remer (3:10)

I can take that. So we're in a highly volatile market. You've seen pricing change over the last seven years. We've been in the business where it's increased dramatically for a period of time, then it plateaued, and now you're seeing sharp decreases. And I'd say a lot of that is credit to some of the reforms that have been put in place and taking the time to play out. Some of that has been managing the way the policies are written as well, to help make sure that the capacity is being put in the right places.

And then part of it's just also been luck with how things have trended. And by luck, I mean how natural catastrophes have shaped the profitability of insurance for the reinsurers, which is insurance for insurance companies. And the trickle down effect that has to the supply, people can purchase to offload that risk to a third party.

Moshe Popack (4:11)

It took me a long time. People don't know this. I'm in the real estate business, and my original business was I had a property and casualty brokerage, just like yourself, small, but I was insuring real estate owners. And then I got familiar. My legal background, I found it fascinating. But let's peel the layer back. You mentioned reinsurance. How many layers? So let's say someone pays a premium. What you get a document that in case something happens, you're covered for that thing that you're insuring for. How does it work as far as reinsurance, wholesalers, brokers?

What's the set up of actually, and then admitted and surplus carriers, and that could like what drives the market just to get educated a little bit.