Florida’s Insurance Market: A Turning Tide

Dave Magua and the Dave Magua Group of realtors are keeping a watchful eye on the evolving property insurance landscape in Florida, as recent developments signal positive changes for the state’s insurance market.

A Turning Tide

For the first time in years, the Florida Office of Insurance Regulation (OIR) has reported a decrease in the average price of reinsurance for insurance carriers operating in the state. This encouraging trend comes as a result of legislative changes focused on property insurance, which are beginning to show positive effects.

Increased Interest from Insurers

Insurance Commissioner Michael Yaworsky has highlighted the growing interest in writing business in Florida. Several notable developments include:

• State Farm seeing increased opportunities to underwrite property business in Florida
• Approval of a ninth new insurer, Trident Reciprocal Exchange
• Progressive Insurance committing to continued investment in Florida underwriting

Citizens Property Insurance Corporation Depopulation

The FLOIR reports significant progress in the depopulation of Florida’s Citizens Property Insurance Corporation:

• Insurers approved to assume 768,692 policies from Citizens in 2024
• 858% increase in policy assumptions since 2022
• 132,445 policies removed from Florida Citizens so far
• $64,852,563,061 reduction in Citizens’ exposure this year

Positive Rate Trends

The Florida insurance market is showing signs of stabilization:

• 180-day average request for homeowners’ rates as of August 1st, 2024: 1.2%
• Twelve insurers have filed for rate decreases in 2024
• Twenty-four companies have filed for zero percent increases

Reinsurance Market Appetite

Perhaps the most crucial indicator of the Florida insurance market’s health is the renewed appetite of the reinsurance market. Preliminary results from the Annual Reinsurance Data Call show an average 1.7% decrease in risk-adjusted reinsurance costs from 2023 – the first decrease in years.

Cautious Optimism

While these developments are encouraging, it’s important to note that not all reinsurers are increasing their appetites for Florida risk, especially given forecasts for an active hurricane season. However, the combination of reinsurance stability and renewed confidence in Florida’s property insurance market legislation is certainly helping.As we navigate through the rest of the hurricane season, the Dave Magua Group remains committed to monitoring these trends and their potential impact on the real estate market. Our team understands the critical role that insurance plays in property transactions and overall market health. We’re here to provide expert guidance and support to our clients as they navigate these changing conditions in the Florida real estate landscape.