Florida’s Property Insurance Market Shows Signs of Stabilization in 2024

On May 17, 2024, the Florida Office of Insurance Regulation (OIR) announced positive developments in Florida’s property insurance market. Property insurance rate filings for 2024 show a downward trend for the first time in years, signaling market stabilization. This improvement is attributed to the continuous efforts of Governor DeSantis, the Financial Services Commission, and the Florida Legislature to implement meaningful reforms.

Insurance Commissioner Michael Yaworsky highlighted the significance of these reforms in enhancing consumer protection and market reliability. The recent signing of House Bill 1611 by Governor DeSantis has introduced additional consumer protections and granted the OIR increased regulatory authority.

The OIR’s update emphasized the following key points:

Rate Filings: For 2024, ten companies have filed for zero percent rate increases, and at least eight companies have filed for rate decreases.

Reinsurance: Positive responses from the reinsurance market in 2023 are expected to continue in 2024, indicating effective reforms.

Financial Strength: Many insurers reported a net profit in 2023 after years of consecutive losses.

Market Expansion: Eight new companies have been approved to write homeowners policies in Florida, and an additional company has expanded its footprint.

Citizens Property Insurance Corporation: Approximately 389,000 policies were transferred from Citizens between January 2023 and March 2024.

Legislation Impact: Other states, such as Hawaii, Georgia, and Louisiana, are looking to Florida’s legislative reforms as models for their own insurance markets.

House Bill 1611 introduces several measures, including monthly supplemental data reporting by insurers, a prohibition on canceling policies within 90 days post-repair for hurricane-damaged properties, and the elimination of Citizens’ statutory provision to charge higher rates for policyholders from unsound insurers.

The OIR has also initiated over 50 market conduct investigations post-Hurricane Ian to evaluate claims handling processes and enhance compliance.