After Hurricanes Helen and Milton made landfall on Florida’s coast, Insurance Commissioner Michael Jaworski shared an encouraging update on the state’s property and casualty insurance market.
Recent announcements from Progressive, State Farm, and the approval of several new property insurance companies highlight the positive impact of Florida’s major 2023 reforms.
National Insurance continues to expand its presence in Florida, even as it scales back operations elsewhere.
After a recent meeting with Governor DeSantis and USAA representatives, USAA reaffirmed its commitment to investing in Florida’s growing market and said, “It is very encouraging to see the progress toward a healthy insurance market in Florida.” We have high hopes for the law reform in 2023.” Achieve a more robust and stable environment. USAA remains committed to our members in Florida, responsibly growing and serving our members in this important market. ”
“We are very pleased to share these announcements as they demonstrate the continued strength of Florida’s property and casualty insurance market, which is a sign of the continued strength of our industry in recent months. “Contrary to the prevailing narrative,” Health Secretary Michael Jaworski added.
“OIR has and will continue to work with all airlines in the state to build on the significant progress made to date and aim to end this year on a glide path for sustained growth. Masu.”
Improvements in the insurance market are supported by recent rate filings, increased participation in the Citizen Property Insurance Corporation (Citizen) depopulation program, lower reinsurance costs, and an increase in insurers committing to Florida.
As of October 9, 15 companies had applied for 22 rate reductions that would affect 1.5 million home insurance policies starting in 2024. Additionally, 29 companies applied for zero percent price increases, affecting 1.9 million home insurance policies.
The average request for homeowners insurance rates over the past 30 days is now 1.6%, which is significantly lower than last year’s average of 7.03%. Additionally, the 180-day average required rate for homeowner interest rates in 2024 will be 0.9%, down from 8.08% a year ago.
OIR actively supervises the conduct of insurance companies to ensure compliance with Florida law, which requires that insurance companies act with integrity and deal fairly with consumers during the claims process. is emphasized.
The office focuses on timely resolution of consumer issues and can initiate informal inquiries and investigations when violations are identified. Based on the results of these reviews, OIR may impose administrative actions, penalties, or require compensation to protect consumers from unfair business practices.
In fiscal year 2023-24, the insurer returned $8 million in monetary damages directly to Florida consumers and completed additional corrective actions mandated by OIR following a market conduct investigation.
OIR is observing continued growth in the Citizen Depopulation Program, with 18 companies approved to underwrite more than 1 million insurance policies by November 2024. Eight companies were recently approved to write 235,035 individual home insurance policies for November underwriting dates.
The recognized market, particularly the homeowner sector, expanded through increased national depopulation efforts and policymaking.
Interest in condominium association policies is also increasing as chartered carriers look to take over these policies from Citizen, resulting in a $15 billion reduction in exposure from January to August 2024 I will do it.
Finally, reinsurance costs for Florida airlines continue to decline, with most companies spending less on reinsurance than they did in 2023. Average risk-adjusted costs in 2024 decreased by 0.7%, significantly down from last year’s 27% increase.
