A new report from Verisk predicts a “new reality” in future natural catastrophes, with unprecedented global losses to exceed $152 billion annually.  It’s being driven by “frequency perils” − frequent events, such as daily afternoon summer storms and hurricanes, that are driving high-impact losses.

Former Florida Deputy Insurance Commissioner Lisa Miller sits down with a Verisk modeler and a Florida property insurance company meteorologist and risk analyst, to discuss how catastrophe modeling works, how insurance companies use it to set homeowners rates, and its importance in understanding and mitigating extreme weather risks now and in the future.

Show Notes  (For full Show Notes, visit https://lisamillerassociates.com/episode-60-our-growing-catastrophe-risk/) 

The podcast discusses the increasing frequency and severity of storms and their impact on property insurance rates, particularly in Florida.  Dr. Julia Borman is Assistant Vice President of the Regulatory and Rating Client Services Team at Verisk.  It’s part of the data analytic firm’s Extreme Event Solutions division, which assists clients in working with regulators and rating agencies on a variety of projects, including data calls, utilizing catastrophe modeling in rating plans, and stress tests.  Natalie Ferrari is a Meteorologist and Catastrophic Risk Analyst for American Integrity Insurance Company, based in Tampa, Florida.  She provides data-driven insights into developing storms and their potential impacts by leveraging Verisk’s modeling.  Together, with host Miller, they explored the evolving landscape of catastrophic risk modeling in rate filings and regulatory processes, the intensifying impact of extreme weather, and the need for resilience and preparedness in the face of natural disasters that modeling can guide.

Catastrophe Models: The Backbone of Modern Insurance

Verisk’s newest report, Modeling Insured Catastrophe Losses: A Global Perspective for 2025, projects expected future global losses to exceed $152 billion annually.  That’s up from the $132 billion annual average loss over the past five years.  Host Miller quoted Verisk Extreme Event Solutions President Rob Newbold’s remarks on the September 2025 report, that “the modeled losses reflect a fundamental shift in the risk landscape.  Natural catastrophe losses are no longer statistical anomalies.  They are the new normal.”  

Borman said the report’s $152 billion figure is a particularly significant one, given that the actual global losses in 2024 were around $137 billion.  “Over half of it was what we call frequency peril loss.  You used to hear around the industry, folks were calling things like severe thunderstorms and wildfire ‘secondary perils.’  We don't call them that at Verisk anymore.  They are frequency perils based on the fact that they happen often, typically within a year and those can really aggregate up into a large proportion of an insurance company's overall loss for the year,” Borman said.

The catastrophe models look at a variety of different perils, including hurricanes, earthquakes, flooding, wildfires, and winter storms.  “We were writing the report not just to understand the total amount of loss, but also the insurance gap that might exist around the world and where that was most prevalent,” she added.   (For full Show Notes, visit https://lisamillerassociates.com/episode-60-our-growing-catastrophe-risk/) 

An article in the Wall Street Journal suggests that Florida’s property insurance market is inherently flawed and financially shaky, under the review of a smaller ratings company.  It cites the 12 insurance company insolvencies between 2019 and 2023 in a market painted as over-reliant on reinsurance. 

Former Florida Deputy Insurance Commissioner Lisa Miller sits down with Demotech President & CEO Joe Petrelli and former Florida Insurance Commissioner Kevin McCarty to explain the unique nature of Florida’s market, how financial ratings of insurance companies are formulated, the critical role of reinsurance, the confusion between rate and premium, and the real reasons behind those insolvencies.

Show Notes  (For full Show Notes, visit https://lisamillerassociates.com/episode-59-how-secure-is-floridas-property-insurance-market/) 

Host Miller discussed the evolution of Florida's property insurance market following 1992’s Hurricane Andrew, highlighting the departure of large insurers and the rise of smaller, regional companies that still make up most of today’s market.  Miller, an employee of the then Department of Insurance, said “large legacy insurance companies left our state altogether, saying the risk exposure was just too great.  Likewise, after 2017’s Hurricane Irma, other companies stopped writing new policies.”  

Florida’s Unique Market
Miller noted that the state’s property insurance market has adapted over the ensuing 33 years to continue to provide needed insurance “for what's become one of the riskiest places on earth to insure.  It has unique challenges that have prompted innovative solutions.”  One of those solutions was Demotech, a Columbus, Ohio-based actuarial firm that provided ratings for Florida’s new regional companies when other ratings companies would not.  

Demotech’s Role
Demotech President Joe Petrelli said its specialty in reviewing and assigning Financial Stability Ratings (FSRs) for independent regional carriers was born of the need of federal mortgage backers Fannie Mae and Freddie Mac in 1988, who together own or insure a substantial number of home mortgages nationwide.  They vetted Demotech’s ratings methodology and today, the firm provides FSRs for most of the 55 Florida based property insurance companies, including some of the recent 14 carriers who’ve entered the market since the Florida Legislature’s 2022-2023 litigation and consumer protection reforms.  Now in its 40th year, Demotech rates insurance companies across the nation that write billions of dollars of premiums.

“We look at carriers independent of their size.  We look at them based on their business model, the execution of that business model, and the complementary nature of their reinsurance program,” said Petrelli.  “So I think that's what makes us unique.  I think when we look at catastrophe prone areas, whether it's wind, fire, tornado, hail, earthquake, what we're looking at is, does your reinsurance program give you the claims paying ability that you need?”  (For full Show Notes, visit https://lisamillerassociates.com/episode-59-how-secure-is-floridas-property-insurance-market/) 

Nine months after hurricanes Helene and Milton struck Florida, new insurance claims data is revealing the growing amount of damage not covered by insurance.  Of the more than half a million combined claims filed so far, 56% of Helene residential claims were closed without payment and about 43% of Milton residential claims.  A closer look shows the majority were uninsured or underinsured.

Former Florida Deputy Insurance Commissioner Lisa Miller sat down with the heads of an insurance agency and a claims adjusting firm to find out why this is happening, how to determine proper coverage this hurricane season, and improvements in claims processes and technology. 

Show Notes  (For full Show Notes, visit https://lisamillerassociates.com/episode-58-the-17-reasons-your-florida-claim-wasnt-paid/)  

When hurricanes Helene and Milton swept through Florida, they left more than just physical devastation in their wake − they exposed critical gaps in homeowners’ understanding of natural risk and insurance coverage, especially regarding flood protection.  In this podcast, host Lisa Miller talked with two industry veterans − Lee Wiglesworth, President of Wiglesworth-Rindom Insurance Agency in Stuart, Florida, and Fraser Hudson, CEO of Lozano Insurance Adjusters of St. Petersburg − to dissect the data, debunk common myths, and offer actionable advice for insurance agents and Florida policyholders facing the daunting world of insurance claims.  From claims to coverage, they discussed what every Florida property owner must know after hurricanes Helene and Milton.  The podcast also provides a deep dive into Florida’s insurance landscape.

Reasons for Uninsured/Underinsured Properties

Hurricane Helene and Milton Florida insurance claims now total $7.3 billion with more than 90% of claims closed, according to the Florida of Insurance Regulation (OIR), in its June 10, 2025 claims update, the first since November 2024, just weeks after the storms’ landfalls.  More than a half a million claims (519,689) have been filed across all insurance lines.  On homeowners claims, the data shows that 56% of Helene residential claims have been closed without payment and about 43% of Milton residential claims.  The majority of those unpaid claims were flood damage not covered under a homeowners policy or the damage was below the policy deductible, per the table below.  (For full Show Notes, visit https://lisamillerassociates.com/episode-58-the-17-reasons-your-florida-claim-wasnt-paid/)  

A multi-bill effort led by attorney lawmakers in the Florida House of Representatives would roll-back many property insurance litigation reforms passed in the 2022-2023 legislative session.  Those reforms are reminiscent of the Workers’ Compensation insurance reforms passed in the early 2000’s that today has Florida boasting one of the lowest workers’ comp rates in the country. 

Former Florida Deputy Insurance Commissioner Lisa Miller talks with Jon Shebel, former President & CEO of Associated Industries of Florida who led the workers’ comp efforts.  Shebel draws direct comparisons between both reform efforts, argues that the proposed bills this session don’t help consumers, and urges the legislature to listen to the data, as it did with workers’ comp, that shows property insurance reforms are working to reduce homeowners insurance rates. 

Show Notes  (For full Show Notes, visit https://lisamillerassociates.com/episode-57-floridas-property-insurance-reforms-lessons-learned-from-workers-comp/) 

Jon Shebel recounts his role in Florida’s 2003-2005 workers' compensation reforms, which capped attorney fees and streamlined claims, reducing rates from the highest to among the lowest in the U.S.  Florida’s rates have dropped for the eighth consecutive year.

“The biggest issue was litigation,” explained Shebel, on the reason for high workers’ comp insurance rates.  “Plaintiff attorneys had free rein to convince injured workers to sue their employers, often leading to drawn-out cases that weren’t necessarily in the workers’ best interest.  There were cases where legal fees ended up costing more than the actual medical treatment and benefits for the injured worker.”

Shebel said that very same incentive to sue contributed to Florida having the highest property insurance rates in the country between 2017 and 2023.  By 2021, Florida had 8% of all homeowners’ claims in the U.S., yet 76% of all homeowners’ claims lawsuits, according to the Florida Office of Insurance Regulation.   Likewise, a 2021 report titled Florida’s P&C Insurance Market is Spiraling Toward Collapse revealed that “Of the $15 billion spent on litigated claims since 2015, only 8% was paid to policyholders.  Plaintiff attorneys got 71% with the remaining 21% spent by insurance companies on defense attorneys.” 

Shebel said Florida’s property insurance reforms took a lesson from its workers’ compensation insurance reforms 20 years earlier.

“Our strategy in workers’ comp was to address the root cause, plaintiff attorney involvement.  The main provisions included capping attorney fees, streamlining the claims process, and implementing stricter guidelines to prevent unnecessary lawsuits.  This not only reduced legal costs but also ensured that injured workers got the benefits they needed faster, without the delays that litigation often caused,” Shebel said.  All....  (For full Show Notes, visit https://lisamillerassociates.com/episode-57-floridas-property-insurance-reforms-lessons-learned-from-workers-comp/) 

A sensational newspaper article alleging bad deeds by Florida insurance companies is prompting the Florida House of Representatives to look into the relationship between companies and their Managing General Agents (MGAs) and affiliated companies.  The Tampa Bay Times reported the companies diverted billions of dollars to affiliates while claiming to lose money from hurricanes, based on the newspaper’s reading of a regulator’s draft report.

Former Florida Deputy Insurance Commissioner Lisa Miller reveals the inadequacies of the article and its misleading and incomplete portrayal of the market and regulation.  She’s joined by a veteran Florida insurance agent who explains how MGAs and affiliates function, the financial dynamics of the insurance market, and the consumer safeguards built into the system. 

Show Notes  (For full Show Notes, visit https://lisamillerassociates.com/episode-56-florida-property-insurance-facts-vs-fear/ ) 

Allen McGinniss is a licensed Florida insurance agent and the principal of the McGinniss Himmel Insurance Agency, based in Tallahassee, Florida.  He began his insurance career 20 years ago as a State Farm agent before transitioning to an independent agent and co-founding his agency in 2015.  He explained what Managing General Agents (MGAs) are and the crucial role in the insurance industry by performing essential administrative tasks for insurance companies.  These tasks include:

Why Are MGAs Important?
MGAs help streamline operations by providing specialized knowledge and services that insurance companies may not handle internally.  McGinniss said they can either operate within an insurance company or function independently.  This flexibility allows insurance companies to:

The Tampa Bay Times Article

The Tampa Bay Times published an article on February 22, 2025 titled Florida insurance companies steered money to investors while claiming losses, study says.  Its reporting was based on a draft of a 2022 consultant’s study for the Florida Office of Insurance Regulation (OIR) for the time period of 2017-2019.  According to the article, “While Florida insurers claimed to be losing money in the wake of hurricanes Irma and Michael, their parent companies and affiliates were making billions of dollars.”  It reported that the previously unreleased study’s summary “reveals that as the industry was ailing and companies were losing money, executives distributed $680 million in dividends to shareholders while diverting billions more to affiliate companies,” which included MGAs.  

McGinniss argued that the...  (For full Show Notes, visit https://lisamillerassociates.com/episode-56-florida-property-insurance-facts-vs-fear/ ) 

One of the elements credited in the evolving success of Florida’s recent property insurance reforms is data collection and reporting.  Property insurance companies are required to provide regulators with specific data on litigated claims.  The number of lawsuits decreased significantly in 2024 as a result and with it, upward pressure on homeowners insurance rates. 

Now there’s a push to implement a litigation data standard nationwide.  Former Florida Deputy Insurance Commissioner Lisa Miller sits down with CaseGlide CEO Wesley Todd who is behind the move, citing increasing nuclear verdicts and new challenges in other lines impacting insurance availability and affordability. 

Show Notes 

The podcast delves into the transformative changes in Florida's homeowners insurance litigation landscape, driven by legislative reforms and the critical role of data transparency.  Wesley Todd said he formed Tampa-based CaseGlide in 2013 to bring greater transparency to insurance litigation through data analytics and “level the scales of justice.  But what was missing was the ability to see what was happening, the ability to do something about it.”  More than ten years later, he is continuing to emphasize the importance of data transparency in understanding litigation trends and improving the insurance industry's efficiency.

Todd told host Miller that the insurance industry today faces “an inflection point.”  Nuclear verdicts, social inflation, and judicial activism have driven unprecedented litigation costs, destabilizing insurance companies’ ability to fulfill their fiduciary obligations.  Meanwhile, plaintiff attorneys have transformed their practices with analytics, funding, and transparency, positioning themselves to maximize litigation outcomes “at the expense of insurers,” he said.

"I'm really sort of just giving the industry a heads-up that this is where we're headed if we're lucky, right?  I mean otherwise it could be too late.  It could be that insurance becomes unaffordable and unavailable in major lines like casualty, professional liability, just like we see in commercial auto, just like we saw temporarily in Florida," Todd said.

Todd discussed his recent policy paper that advocates for a data-driven approach to decision-making and highlights the need for standardized litigation data to support industry reforms and better serve consumers.  He is urging insurance companies across the U.S. to implement a “Litigation Data Standard.”  He describes it as a governance framework for collecting, auditing, and analyzing litigation data.  This “institutional reform” would help realign insurance companies with their duties of compliance, reasonableness, and transparency, enabling them to meet regulatory expectations, counter judicial activism, and deliver legal services of comparable quality to their opponents in the plaintiff bar.

Todd’s concept is based on Florida’s litigation challenges.  In 2021, Florida accounted for 7% of the nation’s homeowners insurance claims, yet 76% of the nation’s homeowners insurance lawsuits.  The legislature passed a series of successive reforms from 2019 through 2023, including the elimination of one-way attorney fees for plaintiff attorneys to help fix the problem.  (For full Show Notes, visit https://lisamillerassociates.com/litigation-data-standard/) 

Amid accusations that Florida’s property insurance companies, including state-backed Citizens Insurance, are deliberately paying only half their claims and “in a state of collapse,” comes new insight and fresh data that debunk the charges.  The man behind the allegations is Martin Weiss of Weiss Ratings, who’s now the subject of an investigation by state insurance regulators.

Former Florida Deputy Insurance Commissioner Lisa Miller shares the new push-back from Citizens’ President & CEO on these accusations and sits down with the head of a large private insurance company who shares new data showing why these charges are inaccurate and unfair in what is a tightly-regulated marketplace. 

Show Notes (For full Show Notes, visit https://lisamillerassociates.com/episode-54-the-truth-behind-the-50-claims-denial/ 
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The news stories emerged mere weeks after two devastating hurricanes – Helene and Milton – struck Florida, creating $5.3 billion in estimated insured losses in Florida as of late November 2024.  Host Miller dives deep into the controversies and complexities surrounding the state-created Citizens Property Insurance Corporation and the broader Florida property insurance market on its claims handling and claims payment rates.  

"The innuendo that's going around in the media space is that there is a suspicion that Citizens is trying to cheat its customers, and now forces are trying to extend that innuendo to Florida's private property insurance market companies,” said Miller.  “In my opinion, that's just plain dishonest and unfair."

The program features soundbites from Weiss, Citizens Property Insurance President & CEO Tim Cerio, and a studio interview with Locke Burt, CEO and Chairman of Security First Insurance Company.  Burt served in the Florida Senate for 12 years, where he helped write the laws that created Citizens and the Florida Hurricane Catastrophe Fund.

Weiss, in various November media reports, said that he’d reviewed Citizens Property Insurance 2023 annual financial statement and concluded that Citizens didn’t pay 50.4% of its 2023 claims.  He said that was worse than any private insurance company’s no-pay rate.  Weiss declined an invitation to appear on the podcast.

Burt and Cerio defended Citizens and the broader Florida insurance market against Weiss’ accusations, noting there are legitimate reasons claims are closed without payment.  It's not always about denial.  The reasons include: 

Weiss, in his criticism of Citizens, was quoted in the media as saying “One factor that we believe is probably playing a role is a deliberate strategy to reduce their liabilities for whatever reason.”

Cerio shot back at the December 4, 2024 Citizens Board of Governors meeting.  “It's critical to just point out that, we are the state created, not for profit, insurer of last resort.  We have no financial incentive to not play claims.  Zero,” he said.

(For full Show Notes, visit https://lisamillerassociates.com/episode-54-the-truth-behind-the-50-claims-denial/
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Image credit:  danielfela/Shutterstock

Why were some homes in Hurricanes Helene and Milton heavily damaged while others sustained little or no damage?  Much of the answer lies with the building materials and techniques used in their construction. 

Former Florida Deputy Insurance Commissioner Lisa Miller talks with a building science researcher, a building products manufacturer, and a developer whose homes survived unscathed from the hurricanes about how resilient construction can save money and insurance costs for both new and existing homes. 

Show Notes (For full Show Notes, visit https://lisamillerassociates.com/episode-53-fortified-homes/)  

Host Lisa Miller opened the discussion by highlighting the devastation caused by recent Hurricanes Helene and Milton, particularly in Florida.  She emphasized the urgent need for homeowners to prepare their properties to withstand such disasters.  “Everywhere I go in Florida, I see homes built with plywood and two-by-fours, and I affectionately say that these production homes are built with sticks.  I don’t see how they withstand 150 mph winds,” said Miller, who is a disaster insurance and recovery expert.  The focus of the episode is on using innovative building products and techniques to enhance the resilience of homes.

Fred Malik, Managing Director of the Fortified Program at the Insurance Institute for Business and Home Safety (IBHS), shared his expertise on building techniques and materials designed to minimize damage from natural disasters.  He stressed the importance of rigorous building standards and inspections, noting that "you get what you inspect, not what you expect."  Malik explained that homes built to the Fortified standard undergo thorough third-party inspections, ensuring that critical details are not overlooked.  This certification process provides consumers with a way to differentiate between homes that may appear similar but have vastly different levels of resilience against severe weather.

Marshall Gobuty, Managing Director at Pearl Homes Developments, shares his firsthand experience with building resilient homes. He discusses his development, Hunter's Point in Cortez, Florida, which successfully withstood Hurricane Milton without any damage.  Gobuty attributes this success to his innovative building practices, which include using a combination of block and poured concrete for foundations, as well as advanced insulation techniques that enhance the structural integrity of the homes.

Scott Lidberg, CEO of NEXGEN Building Products, introduced his company's innovative magnesium oxide-based building materials.  He explained how these products can replace traditional materials like plywood and gypsum, offering superior resistance to impact, moisture, and fire.

(For full Show Notes, visit https://lisamillerassociates.com/episode-53-fortified-homes/) 

What’s going on with property insurance in Florida?  Specifically rates, coverage, condominiums, automobile insurance, telematics, flood insurance, and the reinsurance costs that carriers pass along to consumers.  

Former Florida Deputy Insurance Commissioner Lisa Miller gets to the heart of the issues with three experienced insurance agents in South, Central, and North Florida who share their insights and suggestions on improving Florida’s challenging property insurance market. 

Show Notes 

Host Lisa Miller and guests discussed the high premiums affecting homeowners and auto insurance, driven by catastrophic weather, inflation, litigation, and reinsurance costs.  Positive trends such as rate decreases and more flexible coverage options are highlighted.  The conversation also covered the critical need for flood insurance and the role of the news media in educating the public about insurance complexities and how agents can help the media do so.  The episode underscores the importance of transparency and proactive communication in the industry.

Miller’s guests each brought unique perspectives from different regions of Florida:

Overview of the Florida Insurance Market

Host Miller highlighted the current state of the Florida insurance market, where premiums for automobile, homeowners, and commercial insurance are at an all-time high.  She identified four main factors driving these rates:

Host Miller emphasized the uncertainty surrounding reinsurance costs, especially with the ongoing hurricane season, and the potential for higher rates if a significant hurricane occurs.

Positive Trends in Homeowners Insurance

Rate Decreases and Stabilization

Host Miller highlighted a recent report from the Florida Office of Insurance Regulation that 12 companies have requested rate decreases, while 25 have sought to maintain their current rates. For example, American Integrity Insurance Company has announced a nearly 7% rate decrease for a significant number of policyholders...  (For full Show Notes, visit https://lisamillerassociates.com/episode-52-agent-roundtable/) 

High-risk flood zones are expanding this year along significant stretches of Florida’s coastline.  In Broward County, nearly 90,000 properties have been moved into a FEMA flood zone.  But 80,000 of them were in such a zone prior to ten years ago, when FEMA moved them out – only to add them back in this year.  Many will now have to purchase flood insurance.

Former Florida Deputy Insurance Commissioner Lisa Miller talks with the county floodplain manager for an explanation, the reporter who broke the story, and another reporter from Palm Beach County, which is fighting FEMA’s efforts to expand flood zones. 

Show Notes 

FEMA calls these high-risk flood zones Special Flood Hazard Areas (SFHA).  They are designated on a FEMA Flood Insurance Rate Map as zones that begin with the letter “A” or the letter “V” for those living along the coast, subject to additional threat of storm surge.  Properties in these zones supposedly have a 1% probability of flooding each year, or about a one-in-four chance every 25-30 years.  Some refer to this as the 1-in-100-year flood probability.

FEMA’s 2024 updated maps have moved nearly 90,000 (88,913) properties in Broward County, Florida into a high-risk flood zone.  But almost 80,000 (79,689) were in that zone prior to FEMA’s 2014 map update, then removed, and now 10 years later are back in a flood zone.  “How did this happen and what’s the science behind it?” asked host Miller.

Carlos Adorisio, Floodplain Manager for the unincorporated area of Broward County, explained that FEMA flood maps are based on studies of two factors: rainfall and coastal storm surge.  Maps from the 1980’s and 1990’s reflected most of the county was high-risk.  “In 2014, FEMA updated the maps, but they only updated the portion for the rainfall risk and not for the storm surge.  There was a lot of development and better modeling and a lot of areas were removed from the 100-year floodplain,” he explained.   In its 2024 maps, FEMA updated only the coastal storm surge risk.  “There’s been more development, updated storm data, and better computer modeling techniques and mapping,” since the last storm surge studies done in the 1980’s, said Adorisio, who is a Professional Engineer and a Certified Floodplain Manager.  

“One of the components of storm surge is the sea level, which is higher than they accounted for in the 80’s and therefore the storm surge is higher in this study,” Adorisio explained.  “Now the southern part of the county is lower than the middle and northern sections of the county...and it's to the point where FEMA believes that the higher storm surge elevation not only goes to I-95, it goes all the way to U.S. 27, which is close to the Everglades levee.  That’s why you have those almost 90,000 parcels that are increasing in flood risk and now in the Special Flood Hazard Area,” said Adorisio, who earlier in his career worked for FEMA as a technical consultant for flood maps. 

Ron Hurtibise, business reporter for the South Florida Sun Sentinel, first reported the scope of the 2024 flood map changes.  The new high-risk flood zones are primarily located along... (For full Show Notes, visit https://lisamillerassociates.com/episode-51-floridas-expanding-flood-zones/)