Florida’s property insurance landscape is seeing a positive shift as the state’s insurance commissioner announced the approval of ten new insurance companies. This move, following recent legislative reforms, aims to inject nearly $300 million in surplus capital into Florida’s beleaguered property insurance market.

These new companies are set to provide coverage across the state, with expectations of significant rate reductions. Josh Kissel from Southern Insurance Services commented, “Florida is like its own country when it comes to insurance,” highlighting the unique challenges and now, opportunities in the state’s insurance sector.

Insurance Commissioner Michael Yaworsky attributes the stabilization to historic legislative reforms, which are paving the way for a more robust market. Kissel advises patience, noting, “You need to wait… It’s great, it’s good news, be patient.” He indicates that while existing companies are beginning to lower rates slightly, the full impact of these new insurers will take time.

In 2024, the Office of Insurance Regulation (OIR) had already facilitated the transition of over 1.2 million policies from the state-backed Citizens Property Insurance Corporation to 18 new insurers. The addition of these ten companies is a further step to alleviate market strain.

Current data from OIR shows a 20% decline in 30-day average requests for homeowner rates, with more than 7.5 million policies now in the market. Kissel estimates that these new insurers could significantly enhance market conditions over the next two to three years, although immediate benefits for individual homeowners might not be instant due to the time needed for underwriting and market strategy development.

Mark Friedlander from the Insurance Information Institute praised the legislative efforts, particularly noting their effectiveness during the 2024 hurricane season, which saw three hurricanes make landfall in Florida without destabilizing the insurance market.

Friedlander emphasized the importance of legislative stability, answering how Florida can continue to progress without regression: “The best way to progress is number one, ensure there’s no legislation passed that would have negative impacts.”

For the first time in two years, the number of policies held by Citizens has dropped below one million, reducing their exposure by more than $170 billion, signaling a significant reduction in risk for the state-backed insurer.

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(Image credit: Miami Herald)