Florida Insurers Confident in Managing Losses From Another Major Hurricane This Season

Florida’s home insurance market is better positioned to endure another major hurricane this season, according to industry experts, despite warnings from leading rating agencies AM Best and Fitch. The agencies suggested that Hurricane Milton, a Category 4 storm, could stretch the liquidity of Florida-based insurers, but experts argue the market can handle the potential losses.

A significant factor is the adequate reinsurance capital already in place, bolstered by state legislative reforms enacted in 2022 and 2023. These reforms addressed legal system abuse and claim fraud, stabilizing the insurance market after years of financial strain. Industry experts believe that even if another hurricane of Milton’s scale occurs, Florida’s insurers will be able to cover losses and maintain financial stability.

Additionally, the catastrophe modeler Karen Clark & Co. emphasized that insurers utilize sophisticated tools to assess and prepare for varying hurricane impacts, ensuring resilience against future storms.