Florida’s Property Insurance Market Shows Improvement Following Legislative Reforms

Florida’s Insurance Commissioner, Michael Yaworsky, has reported positive developments in the state’s property and casualty insurance market, attributing this progress to "historic legislative reforms." The Florida Office of Insurance Regulation (OIR) has observed signs of market stabilization, notably with the approval of eight new property and casualty insurers entering the Florida market. This growth is seen as a direct result of efforts to implement legislative reforms aimed at promoting market stability and attracting more insurers to the state.

Further bolstering the market is the Citizens Property Insurance Corporation, which has shown significant financial strength improvements in 2023 compared to previous years. A key initiative, the Citizens Depopulation program, has attracted interest from authorized insurers. In 2024, 13 companies were approved to assume over 354,000 policies from Citizens, a move expected to reduce Citizens’ exposure by more than $113 billion. Notably, HCI’s subsidiary, TypTap Insurance Company, assumed approximately $30 million of in-force premium from Citizens in December last year.

The financial standing of Florida’s domestic property insurance companies has also seen remarkable improvement. After consecutive years of losses totaling over a billion dollars, 2023 marked a pivotal year where the combined net underwriting nearly broke even. This positive turn was further supported by investment income, leading to net positive income for the first time since 2016.

Another indicator of the market’s strengthening is the reduction in loss reserve development. Insurers’ year-end 2023 data showed a significant decrease in uncertainty within the property insurance market. This was evidenced by a 44.8% decrease in loss reserve development at the two-year look-back period and a 28% decrease at the one-year mark. These developments underscore the effectiveness of the recent legislative reforms and the ongoing commitment of the OIR to stabilize and enhance Florida’s insurance market, aiming for a competitive landscape for policyholders.