The Florida Office of Insurance Regulation (OIR) has recently noted a downward trend in insurance rate filings for 2024, the first such trend in years. This suggests that the state's property and casualty insurance market is continuing to strengthen.
In a press release, it was revealed that in 2024, ten companies have filed for a zero percent increase, while at least eight companies have filed for a rate decrease that will come into effect in 2024. The OIR attributes this trend to reforms implemented by Governor Ron DeSantis and the state's legislature.
According to the same press release, new reforms are currently being introduced into the market. These include House Bill 1611, which was signed by DeSantis last month. This legislation introduces more consumer protections for approximately 7.45 million residential insurance policyholders in the state and will enhance OIR's tools and authority to maintain accountability within the market. The bill includes several provisions such as requiring insurers to submit monthly data reports starting from 2025; prohibiting insurers from cancelling or not renewing policies covering dwellings or residential properties damaged by hurricanes within 90 days after repairs have been completed; and mandating new entities to be subject to OIR's required market conduct examinations.
Insurance Commissioner Michael Yaworsky expressed his gratitude towards Governor DeSantis and bill sponsors Senator Trumbull and Representative Stevenson in the press release. He said, "I want to thank Governor DeSantis and bill sponsors Senator Trumbull and Representative Stevenson for their continued leadership and support as we work to regulate one of the most complex insurance markets in the world."
The press release also highlighted that following years of underwriting losses, many insurance companies reported a net profit in 2023. It further noted that these reforms have had a positive impact on the reinsurance market of 2023, signs that OIR continues to observe in the first half of 2024.