Important PTI Information
Dear Agency Partner,
As you are aware, this has been a tough time in the insurance business, and particularly in Florida. People’s Trust Insurance has made the difficult decision to temporarily cease writing new business in order to maintain the Company’s financial strength and make good on our promise to our policyholders.
Each year, over the past two years, we have seen 30%+ increases in our reinsurance costs, and unfortunately, no matter how aggressive we are with pricing to make up for these increases, due to the nature of the business, the recovery of these costs is delayed up to 24 months due to the timing of renewals and subsequent earning of premiums. The reinsurance cost increases are driven by the antics of some lawyers and public adjusters around the state, and in particular, South Florida, which have excessively driven up Irma claims and put pressure on our reinsurers to raise rates. In addition to the reinsurance cost increases, this year has brought a 300% increase in the frequency of wind claims that are not related to hurricanes. So in addition to these stressors on capital and surplus, our fantastic growth over the past two years has actually put an additional strain on our financials.
In order to maintain the long-term prosperity of the company, we need to re-set to a zero-growth goal until our rate increases catch up with our rising costs, focus our sites on our renewal business, and create operating efficiencies. This means no new business at this time. But, we are, very much focused on the renewal business and taking great care of our existing customers.
Your continued support is GREATLY appreciated!
Please note the following:
If you would like to bind any of the quotes already in the system, we are happy to honor your quote up until October 23rd
If you need to make any coverage changes to existing quotes, please do so at the time of the application
If you need to make an effective date change, an agency underwriter will need to assist you in the requoting process, where the turnaround time is 24-hours
Our Agency Underwriting Representatives will, as always, be available to help you with any of your underwriting needs
If you need assistance in the submission process with requoting, lifting an Underwriting Review (UR), reviewing a red bar, or answering your eligibility questions, our Agency Underwriting Team is available at 877-509-7878, or chat with us at pti.chat.
Thank you,
Jonathan Hollander