May 17, 2024

TALLAHASSEE, Fla. - Today, the Florida Office of Insurance Regulation (OIR) issued an update on the continued strengthening of Florida’s property and casualty insurance market, including that property insurance rate filings for 2024 show a downward trend for the first time in years, indicating the continued stabilization of the property insurance market. This news is a result of the continued prioritization of meaningful reforms to Florida’s property insurance market by Governor DeSantis, members of the Financial Services Commission, and the Florida Legislature.

The news follows the signing of House Bill 1611 by Governor DeSantis which institutes additional consumer protections to ensure OIR has the tools and authority necessary to maintain accountability within the market.

“As Insurance Commissioner, my top priority has been increasing protection for Florida’s consumers and today’s announcement demonstrates Governor DeSantis’ ongoing commitment to ensuring a strengthened and reliable insurance market for policyholders,” said Insurance Commissioner Michael Yaworsky. “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.”

Market Update

OIR continues to see overall market stabilization following the historic legislative reforms of 2022 and 2023 that enhanced protections for consumers, strengthened Citizens Property Insurance Corporation, and encouraged investment by insurers and reinsurers by providing clarity to the market and the risk they underwrite.

Rate Filings: Rate filings for 2024 show a slight trend downward for the first time in years, indicating stabilization of the property insurance market. Ten companies have filed a zero percent increase and at least eight companies have filed a rate decrease to take effect in 2024.

Reinsurance: The 2023 reinsurance market responded positively to these reforms. Early signs from the 2024 reinsurance purchasing season show further positive indications. Reinsurance is a direct and significant cost to consumers and relief in this area is a significant sign that the reforms are working.

Financial Strength: After years of consecutive underwriting losses, the insurers saw overall stability with many companies reporting a net profit in 2023.

Market Snapshot: As of Q4 2023, there are approximately 7.45 million residential insurance policies in force in the Florida property market.

• 81% of those policies are written by admitted insurers, as opposed to Surplus Lines companies or Citizens Property Insurance Corporation.
• Eight new companies have been approved to write homeowners policies in Florida since the reforms, and an additional company was acquired to expand its footprint in the state.

Citizens Property Insurance Corporation: Approximately 389k policies have been taken out of Citizens from January 2023 through March 2024.

Florida Leadership: Other states are looking at recent and historical Florida’s legislative reforms to strengthen their own markets.

• HI (CAT Fund), GA (tort reform), LA (tort reform), are examples.
• Florida has recently presented its reforms as a model at the National Association of Insurance Commissioners.

Market Research: OIR conducts market research across all lines of business, and partners with universities throughout the state to explore innovative ways to improve market outcomes and inform policy decisions.

Market Conduct: Multiple insurers have been held accountable for behavior that is in violation of Florida law.

The full market update can be found here.

House Bill 1611, signed by the Governor, enacts additional regulatory and consumer protection measures that further increase oversight and accountability in Florida’s property insurance market by:

• Requiring insurers and insurer groups to file a specified supplemental data report, including zip code level data, on a monthly basis beginning January 1, 2025.
• Prohibiting insurers from canceling and nonrenewing policies covering dwellings and residential properties damaged as a result of hurricanes or wind losses within 90 days after the dwelling or residential property has been repaired.
• Including additional entities to be subject to OIR’s required market conduct examinations.
• Requiring justification if certain models are used in rate filings to demonstrate that filed rates are reasonable, adequate, and fair.
• Eliminating the statutory provision that allows Citizens Property Insurance Corporation (Citizens) to charge up to 50 percent above the established Citizens rate for policyholders whose coverage was last provided by an insurer determined to be unsound or place into receivership.

House Bill 1611 is the latest piece of legislation intended to strengthen consumer protections and OIR’s market regulation efforts. Following the passage of historic legislative reform, OIR has greater ability to enforce regulatory authority and has taken actions to increase market regulation compliance, including:

• Initiating more than 50 market conduct investigations following Hurricane Ian to evaluate aspects of the claims handling process.
• Publishing a quarterly Insurer Compliance Report to provide ongoing updates on OIR’s market regulation efforts, including recent filings and regulatory actions for companies found in violations of the state’s consumer protections and claims handling practices.

A listing of OIRs recent market regulation actions can be found here.