The Insurance Information Institute (Triple-I) recently published a brief suggesting an upward trend in Florida's property insurance market. This potential improvement comes after years of rampant legal system abuse and claims fraud.
In a press release from Triple-I, it was noted that legislative reforms passed in 2022 and 2023 have laid the groundwork for a more stable market in Florida. The brief highlights several positive developments, including the ongoing reduction of policyholders in Citizens Property Insurance Corp. Citizens Property Insurance, the state-backed insurer of last resort, had emerged as Florida’s largest home insurer due to the risk crisis.
The press release further stated that another encouraging sign is the approval of eight new property insurers by state regulators who are set to enter the market this year. "Property insurers want to do business in a state like Florida which is growing, and there is now some hope that this could eventually happen more and more. However, it is important Florida’s public policymakers ensure the reform that is helping the market recover is not eroded by the billboard lawyers," said Triple-I CEO Sean Kevelighan.
According to the same press release, Kevelighan pointed out that in 2023, Florida experienced an underwriting loss for the eighth consecutive year, citing S&P Global as a source. However, this loss was significantly smaller than those recorded in previous years. The top 50 private insurers in the state posted a cumulative underwriting loss of $190.8 million in 2023 - a substantial improvement compared to losses of $1.80 billion in 2022 and $1.52 billion in 2021.
Despite these promising signs of recovery, Kevelighan cautioned that insurance premiums are likely to increase in 2024. As explained by Triple-I, however, this rise will not be as steep when compared to recent years. Additionally, some regional insurance companies have filed for minor statewide average rate decreases.