ORLANDO, Fla. — AAA Insurance has announced it will issue “some” non-renewals for its policyholders.
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The decision comes after last year’s “catastrophic hurricane season (that) contributed to an unprecedented rise in reinsurance rates, making it more costly for insurance companies to operate,” AAA said.
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“We are encouraged by the statutory changes that have recently taken effect and believe they will provide positive results. Those improvements will take some time to fully materialize and until they do, AAA, like all other providers in the state, are forced to make tough decisions to manage risk and catastrophe exposure,” AAA said.
AAA said the number of non-renewals accounts “for a small percentage of our business.”
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“This decision is one we do not take lightly, yet it’s a necessary one to reaffirm our commitment to the state and those we insure,” AAA said in a news release. “We acknowledge that this is a difficult time for those affected. AAA insurance agents are willing and able to help them find alternate coverage.”
The news comes after Farmers announced it is pulling out of Florida insurance, impacting 100,000 policyholders.
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