BestWeek: State Farm Florida Customers Dipping Toes in Property Insurance Market Caroline J Saucer

State Farm Florida's departure from the property insurance marketplace leaves about 40 domestic insurers to vie for the 1.2 million policies it plans to leave behind, according to this week's BestWeek U.S./Canada.

These companies, many of which have formed since 2006, are fielding calls from what they call frantic State Farm policyholders looking for information about everything from policy premiums to business plans. "The phones have definitely been ringing a lot more, and we're not advertising," Jim Graganella, chief executive officer of both Capital Preferred Insurance Co. and Southern Fidelity Insurance Co. told BestWeek.

Also in BestWeek Europe, after nearly four years on the job, Jacques Aigrain resigned as chief executive officer of Swiss Re as the reinsurer struggles with mounting investment-linked losses and a rapidly-falling stock price. Swiss Re said Aigrain has been replaced by Stefan Lippe, the current deputy CEO and chief operating officer. According to the company, Aigrain will assist in the transition until Feb. 18.

And in BestWeek U.S./Canada, the growth in captive insurance companies was held hostage for the past year, but regulators and industry participants are optimistic the sector will pick up the pace by the end of 2009. A soft insurance market and the overall economic slowdown kept many companies, groups and agencies from forming new captives in 2008. This year could be a time of transition, with a hardening of professional lines nudging the formation of new captives in 2010.

BestWeek is published by the A.M. Best Co. for insurance professionals. To subscribe, visit http://www.ambest.com/sales/BestWeek.

Founded in 1899, A.M. Best Co. is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers.
Copyright © 2009 A.M. Best Company, Inc. State Farm Florida's departure from the property insurance marketplace leaves about 40 domestic insurers to vie for the 1.2 million policies it plans to leave behind, according to this week's BestWeek U.S./Canada.