New Litigated Claims Drop 35% in August for Florida’s Largest P&C Insurers
Florida Litigation Management Data Trends, August 2021
As the industry’s leading claims litigation management software provider, CaseGlide compiles a broad swath of claims data that represent a variety of segments and geographies. One of the most interesting data sets that we regularly gather and analyze are litigated claims specific to the majority of Florida’s largest P&C insurance organizations.
New litigated claims dropped sharply in August for Florida’s largest P&C insurers. We recorded a decrease of 35% to 4,313 new litigated claims, down from July’s figure of 6,663. The August drop is the second-largest month-over-month percentage decline in new litigated claims experienced in the past five years. The largest decline, occurring September 2017, was a 51% month-over-month drop, and coincided with Hurricane Irma’s landfall in Florida.
Of the 17 largest Florida insurers we regularly monitor, all experienced a month-over-month decline in litigated claims in August. Seven insurers experienced a greater than 40% drop, and an additional seven saw between a 20 and 39% drop.
“Although we typically see a drop off from summer highs in August or September, this year’s sharp decline is certainly worth monitoring closely,”
“Although we typically see a drop off from summer highs in August or September, this year’s sharp decline is certainly worth monitoring closely,” said Wesley Todd, CEO of CaseGlide. “Florida Senate Bill 76 has undoubtedly contributed to some confusion in the marketplace and going forward we will be tracking Intent to Initiate Litigation Notices to better understand their effect on litigated cases in Florida. It’s too early to judge the bill’s impact yet, but we hope to share some findings in the near future.”
AOB cases as a percentage of total new litigated cases in August were at 24%. The percentage of AOB cases hasn’t varied much over the past 12 months, with the running average being 19.5%.
For 2021, the top 10 AOB contractors in the state represent 25% of all AOB-related new litigated claims, with the top contractor representing 6%.
Geographic distribution of new litigated claims continues to be dominated by the state’s southern counties, with Miami-Dade accounting for 27% of claims, followed by Broward at 18% and Palm Beach at 7%. Those county percentages have stayed mostly consistent over the course of 2021.
CaseGlide remains committed to observing this data closely, monitoring to see if these patterns persist, and how the trends will impact insurers across Florida.