Florida’s Insurance Commissioner Provides Update on Continued Property Insurance Market Stabilization
~ USAA joins Progressive, State Farm and several other national carriers in affirming its commitment to Florida policyholders following 2023 reforms. ~
TALLAHASSEE, Fla. –Today, after Hurricanes Helene and Milton made landfall along Florida’s coast, Insurance Commissioner Michael Yaworsky announced additional encouraging developments related to the state’s strengthening property insurance market. The news follows announcements by Progressive, and State Farm and the approval of multiple new property insurers since the state’s 2023 landmark reforms.
National carriers continue to expand their business in Florida’s market despite reducing their operating footprint elsewhere in the country. This week, following a meeting between Governor DeSantis, Commissioner Yaworsky and USAA representatives, USAA reaffirmed their commitment to investing in Florida's burgeoning marketplace.
USAA indicated that it “is very encouraged to see the progress toward a healthy insurance marketplace in Florida, and we are optimistic the 2023 legislative reforms will bring about a more robust, stable environment. USAA remains committed to our members in Florida where we are responsibly growing and serving our membership in this critical marketplace.”
“I am extremely pleased to share these announcements, as they point to continued strengthening of Florida’s property insurance market, which is contrary to the narrative that has been circulating about our industry in recent months” said Insurance Commissioner Michael Yaworsky. “OIR has, and will continue to work with all carriers in the state to bolster the significant progress that has been made and finish the year on a glidepath to sustained growth.”
Florida’s strengthening market is reinforced in recent rate filings, increased participation in the Citizens Property Insurance Corporation (Citizens) Depopulation Program, reduced reinsurance costs, and more carriers announcing their commitment to Florida’s insurance market.
Florida’s property insurance market is improving:
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Rate Filings: As of October 9, 15 companies have made a total of 22 filings for a rate decrease impacting 1.5M residential policies to take effect in 2024 and 29 companies have made 42 filings for a zero percent increase impacting 1.9M residential policies. The current 30-day average rate request for homeowners’ rates is 1.6%. One year ago, the 30-day average rate request was 7.03%. The current 180-day average request for homeowners’ rates 2024 is 0.9%. One year ago, the 180-day average rate request was 8.08%.
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Market Regulation: OIR's market regulation units continuously monitor the conduct of insurers in the marketplace, enforcing Florida law through remediation and administrative action utilizing market conduct investigations and examinations. OIR recognizes that during the course of any claim, insurers owe the utmost duty of good faith and fair dealing to consumers, as is recognized by common law throughout the country. OIR's primary concern is that consumers' issues are properly and timely resolved. If an issue is found, OIR has the authority to take action either through an informal inquiry, investigation or examination. Based on the findings of an examination or investigation, OIR's market regulation units may take administrative action, impose administrative penalties, require restitution to consumers, and require corrective action in order to protect insurance consumers from unlawful or harmful business practices.
In FY 23-24, insurers have returned $8 million in monetary restitution directly to Florida consumers in addition to completing other corrective actions as required by OIR upon conclusion of market conduct investigations and examinations.
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Private Market Growth: OIR is seeing continued growth in participation in the Citizens Depopulation program. 18 companies have been approved to assume more than 1,000,000 polices through November 2024. The latest takeout approvals include 8 companies for a total of 235,035 personal residential policies for the November assumption date. The admitted market, particularly the Homeowners line of business, has grown both through Citizens depopulation efforts and through increased writing.
Appetite for condominium association policies has continued to increase as admitted carriers seek to take out these policies from Citizens resulting in a $15 billion reduction of exposure (January through August of 2024).. More information on how to participate in the takeout process and latest takeout approvals is available on OIR’s website here.
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Reinsurance: The cost of reinsurance continues to decrease for Florida carriers. This year, most companies paid less for reinsurance than they did in 2023. The average risk-adjusted cost for 2024 was -0.7%, a large reduction from last year’s change of 27% increase from the prior year.
OIR prides itself on being a national leader in identifying market trends because it collects more data about its insurance market than any other state or regulatory entity. Using data reported by insurers, OIR has created the Florida Property Insurance Market Stats, Data and Facts page to provide the latest information and facts on Florida’s property insurance market.
About the OIR
The Florida Office of Insurance Regulation (OIR) has primary responsibility for regulation, compliance, and enforcement of statutes related to the business of insurance and the monitoring of industry markets. For more information about OIR, please visit our website or follow us on Twitter @FLOIR_comm.
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