Office Releases Preliminary 2011 Financial PIP Data
TALLAHASSEE, Fla. – The Florida Office of Insurance Regulation today issued preliminary financial data involving the personal injury protection (PIP) market that directly pertains to bills being debated by the Florida Legislature.
The preliminary data shows that in 2011, Florida’s insurers collected an increase of 19.7%, or $0.5 billion for PIP premiums, and that PIP costs (both direct losses, and direct containment and defense costs) have continued to increase as a percentage of the premium dollar for Florida’s insurers.
A snapshot of the PIP data based on annual filings in 2010 and 2011:
Direct Written Premium: $2.4 billion
Incurred Loss Ratio: 97.7%
Incurred DCC Ratio: 6.9%
Incurred Loss & DCC Ratio: 104.6%
Direct Written Premium: $2.9 billion
Incurred Loss Ratio: 98.4%
Incurred DCC Ratio: 9.1%
Incurred Loss & DCC Ratio: 107.5%
The Loss ratio is the percentage of premium dollar dedicated to paying direct losses based on PIP claims. The Defense and Cost Containment (DCC) Ratio is defined as the percentage of the premium dollar dedicated to defense expenses, litigation expenses, and cost containment expenses.
These numbers are preliminary and based on company filings to the National Association of Insurance Commissioners for 2011 that were accessed by insurance regulators as of March 2, 2012.