Ernie Garateix, CEO, Heritage Property and Casualty Insurance
Ernie Garateix, CEO of Heritage Property and Casualty Insurance, explained to Invest: how the company continues to prioritize disciplined, structured growth through leveraging their strengths as underwriting experts, while also looking towards the future with the intent of expansion and bolstering their presence across their nationwide markets.
Could you provide an overview of Heritage Property?
The company started in 2012 based out of Tampa and grew to be a super regional carrier. We later moved into other states and acquired Zephyr Insurance of Hawaii as well as Merrimack Insurance out of Rhode Island. Our operations have expanded across 16 states, and we have grown to over 540 employees, generating over $1.4 billion in revenue.
Can you share a few of the key milestones from the past year?
The past year brought three major hurricanes – Debbie, Helene and Milton. Employees from across the country, from as far as the Northeast, Hawaii and California came to Florida to assist our teams. We did have quite a lot of claims, but with the assistance of our employees, we were able to process each of these claims efficiently, ensuring quick payouts and rebuilding support. Our company employs a customer-first approach, which prioritizes getting policyholders’ lives back to normal, which means processing their claims, adjusting their claims, sending them payment and helping them through the rebuilding process.
What are some of the advantages of operating your business in Florida?
Florida’s migration boom has attracted diverse skills, mindsets, and ideas. Our internship program taps into Florida’s expanding workforce and offers multiple options for hiring within the company. The positive business climate and economic opportunities fuel industry growth.
How are you sustaining growth and catering to evolving client needs?
We have created our own internal development. Outside recruitment efforts include a partnership with Florida State University to attract risk management students. Heritage provides internal training for customer service employees to move into claims or underwriting roles, with an emphasis on blending technical training with customer service skills. This provides our employees a development timeline for them to advance within the insurance field.
How are you encouraging homeowners to continue maintaining adequate coverage?
We always encourage policyholders to review and tailor coverages annually. There are options to offset costs, and routinely talking with their agent can ensure clients are obtaining all possible deductions, like those for deductibles, content and assets. It is imperative to educate customers on content coverage adjustments and base those coverages based on individual needs.
Are there any trends you are seeing shape the industry today?
Florida’s insurance market is improving after years of instability, through litigation reform and reinsurance stabilization driving premium reductions. We took a premium reduction of 3% last year because we saw the market stabilize, and it was justified based on the improving market conditions. If those markets continue to remain stable, we will see insurance premiums over time fluctuate through small, controlled rate changes instead of drastic spikes.
How are you integrating digital insurance platforms or other technological innovations into your operations?
A new program called the Guidewire System allows us to enhance customer communication and claims efficiency. The program, for example, allowed us to provide proactive customer outreach during recent hurricanes. We were able to send out mass text message alerts both before and after the storms. Satellite and AI-powered tools helped identify property damage before customers even filed claims, and rapid response teams were deployed automatically. This program has allowed us to improve claims processing speed and customer experience.
Are there any specific regulatory changes that you are keeping an eye on that may impact your operations?
For this current legislative session, while there are a handful of bills being reviewed, we do not expect any major changes. We are satisfied with the 2022 reforms, which improved industry stability, and there is an ongoing focus on maintaining legal and regulatory consistency.
How are you investing in the local community through charitable events or educational opportunities?
One of our company’s pillars is to do social good in the community. We offer all of our employees four days of Volunteer Time Off (VTO) to support local charities. This encourages community services through programs like Habitat for Humanity and local education programs. We also provide financial donations and hands-on support in order to provide maximum community impact.
What is your outlook for Heritage Property and Casualty, and what will be your top priorities and goals?
Underwriting discipline will be paramount in each of the markets we serve, with the intent of continuing to grow the organization in a disciplined, structured way. We are insurance professionals and have underwriters and claim handlers in each key area, including Hawaii, Florida and the Northeast. Heritage will continue adapting policies and products based on each market’s unique needs. A major goal of ours is to grow sustainably while maintaining high underwriting standards.
