Residential Policies and Direct Written Premium

OIR oversees one of the largest insurance markets in the world. One of the way OIR monitors data trends in the property insurance market is by tracking the total number of residential policies, the total direct written premium, and the total insured value within the market.

The table below provides policy totals for all carriers in Florida writing residential policies, including Citizens Property Insurance Corporation, starting with Q1 2022 (January 1 - March 31, 2022) to Q2 2024 (April 1 - June 30, 2024). This data can also be found in OIR's Residential Market Share Reports available here.

Data as of June 30, 2024. Data from Quarterly Supplemental Reporting (QUASR).

Admitted Property Market vs. Non-Admitted Property Market

OIR tracks the number of personal and commercial residential property policies within the market through QUASRng. The admitted market is entities regulated through OIR. The non-admitted market is entities such as Citizens Property Insurance Corporation and Surplus Lines carriers. All admitted and non-admitted property writers are required to report data to OIR on a consistent basis. The table and chart below show the percentage of Florida's admitted property insurance market versus the non-admitted property insurance market. 

Admitted Property Market vs. Non-Admitted Property Market - Table

Admitted Property Market vs. Non-Admitted Property Market - Chart 

Data as of October 10, 2024. Data is from Quarterly Supplemental Reporting (QUASR) and Florida Surplus Lines Service Office (FSLSO). Data does not include State Farm for years 2014 - 2018 and American Coastal Insurance Company, United Property & Casualty Insurance Company, and Family Security Insurance Company for years 2017 and 2018 due to trade secret declarations.

Residential Market Share Reports

OIR publishes residential market share reports, which provides information about the amount of direct written premium and total exposure by a company within a market. These reports are updated quarterly and are available on OIR's website here. 

The table below provides information about statewide totals of property and casualty insurers in Florida as of Q3 2024 (July 1 - September 30, 2024).

Data as of September 30, 2024. Data is from Quarterly Supplemental Reporting (QUASR).

The table below provides information about the top 25 largest property and casualty insurers in Florida as of Q3 2024 (July 1 - September 30, 2024). 

Data as of September 30, 2024. Data is from Quarterly Supplemental Reporting (QUASR).

Requested vs Approved Rates - Personal Residential Property

(Homeowners Multi-Peril, Mobile Home Multi-Peril, Dwelling Fire)

Florida's property insurance market has experienced challenges over the past several years. Most of the primary cost drivers in the Florida property insurance market, including catastrophic claims, adverse loss reserve development, inflation, and higher reinsurance costs, are notably exacerbated by excessive and costly litigation. In response to challenges in the market, insurers pass these costs to the consumer by increasing premiums to cover losses and expenses, creating affordability challenges for consumers.

In Florida, there are statutory requirements in place to protect consumers regarding rates and all insurers authorized to transact insurance in Florida must meet all requirements of the Florida Insurance Code. As such, OIR enforces all applicable provisions of Florida Statutes when reviewing policy and rate filings. Rates, including rate increases, must be adequate to maintain insurer solvency and pay claims, in accordance with s. 627.062, F.S. OIR carefully reviews proposed rate filings to ensure they comply with all applicable laws and are not excessive, inadequate, or unfairly discriminatory. Please note, If OIR finds a rate filing is inadequate to support company operations, OIR may direct the company to set a higher rate than requested.   

The table below displays the average requested rate for Personal Residential Property lines of business and the average rate approved by OIR for Personal Residential Property lines of business from August 2020 - July 2024.

Personal Residential Property lines of business include Homeowners Multi-Peril, Mobile Home Multi-Peril and Dwelling Fire. Please note, rates for individual policies may vary.

Personal Residential Property Average Rates Requested and Approved - Table

Data as of July 29, 2024. Data is from rate filings submitted by insurers through the Insurance Regulation Filing System. Data includes Citizens Property Insurance Corporation.

Public Rate Hearings

In Florida, there are statutory requirements in place to protect consumers regarding rates and all insurers authorized to transact insurance in Florida must meet all requirements of the Florida Insurance Code. As such, OIR enforces all applicable provisions of Florida Statutes when reviewing policy and rate filings. Rates, including rate increases, must be adequate to maintain insurer solvency and pay claims, in accordance with s. 627.062, F.S.

OIR carefully reviews proposed rate filings to ensure they comply with all applicable laws and are not excessive, inadequate, or unfairly discriminatory. Additionally, OIR holds rate hearings for rate increases above 15% to receive comments from the public and to hear testimony from companies.

Average Homeowners' Policy Premium Data

OIR tracks the average homeowners' policy premium by county. A premium is the amount of money an insurance company charges for insurance coverage. The average premium by OIR is calculated by dividing direct written premium by policies in force.

Below is an overview of the statewide average homeowners' policy premium as of Q1 2024 (January 1 - March 31, 2024):

• Average Statewide Homeowners' Insurance Policy Premium (admitted market): $3,631.74
  
  
• Average Statewide Condo Unit Owners' Policy Premium (admitted market): $1,827.73
  
  
• Average Statewide Homeowners' Insurance Policy Premium (surplus lines): $8,285.06*
  
  
• Average Statewide Condo Unit Owners' Policy Premium (surplus lines): $3,134.72*

*OIR does not regulate rates for surplus line carriers.

Net Income and Net Underwriting Gain/Loss

OIR tracks the performance of Florida's domestic property insurers, including net underwriting gains, net income, and average combined ratio. Net Income represents the total revenues from an insurer's operations less total expenses and income taxes. Underwriting Gains or Losses represent how much an insurance company has either made or lost from their operations. The Average Combined Ratio is a measure of profitability which takes the sum of incurred losses and expenses and divides them by earned premium. Generally, an average combined ratio over 100 indicates that a company's profitability was negatively impacted by paying out more in expenses and losses compared to what was received from premium.

Performance of Florida Domestic Property Companies - Table

The table below displays information about  the performance of Florida domestic property companies.

Performance of Florida Domestic Property Companies - Chart

The chart below displays information about  the performance of Florida domestic property companies. The orange bar depicts the domestic industry's underwriting gain or loss. The blue bar indicates the domestic industry's net income. The blue line indicates the average combined ratio.

Data as of October 10, 2024. Data is from statutory financial statements submitted to the National Association of Insurance Commissioners. Citizens Property Insurance Corporation data is not included.

Loss Reserve Development

If market trends result in increased claims payments of more than what was originally reserved, the actuary may recommend increasing the company’s reserves for future claims payments. To quantify, when carriers looked back one year later on their claims in 2022, claims were approximately $224 million more than estimated after one year, and $772 million at the two year mark. These numbers reflect the degree of uncertainty which exists in the property insurance market, which in turn impacts reinsurance capacity and reinsurance rates for insurers. The insurance industry is inherently uncertain; for this reason, it is not expected that the established loss reserve will always exactly equal the ultimate cost of claims. 

The data in the table and chart below depicts loss reserve development for Florida domestic insurers. The data in the table and chart below is as of Q4 2023 (October 1 - December 31, 2023).

Loss Reserve Development Over Time - Table

Year	One-Year Loss Reserve Development	Two-Year Loss Reserve Development
2018	$418,361,083	$241,305,223
2019	$422,383,887	$682,716,189
2020	$256,176,545	$676,441,792
2021	$480,695,579	$336,997,842
2022	$223,592,143	$721,989,376
2023	$160,885,675	$398,721,036

Loss Reserve Development Over Time - Chart

For the chart below, the blue line shows the one-year loss reserve development, and the orange line shows the two-year loss reserve development.

Data as of December 31, 2023. Data is from statutory financial statements submitted to the National Association of Insurance Commissioners and from Quarterly Supplemental Reporting. Citizens Property Insurance Corporation is included.

Authorized Insurer Financials

Pursuant to s. 624.315, F.S. OIR tracks the names of authorized insurers transacting insurance in this state, by requiring abstracts of their financial statements including assets, liabilities, and net worth. The documents below contain the Authorized Florida Insurer Financial Abstracts for calendar years 2019, 2020, 2021 and 2022, as required by s. 624.315, F.S.. The Authorized Florida Insurer Financial Abstracts contain information regarding net admitted assets, liabilities, capital and surplus, and direct premiums written in Florida.

Please note: Data represented in the Authorized Florida Insurer Financial Abstracts is submitted to OIR following the conclusion of the previous calendar year. Each report below is categorized by publishing year and the calendar year data contained within the report.

• 2023 Report - Calendar Year 2022
• 2022 Report - Calendar Year 2021
• 2021 Report - Calendar Year 2020
• 2020 Report - Calendar Year 2019

The Clams Life Cycle Report (Property Claims and Litigation Data Call)

Pursuant to s. 624.424(11), F.S.,  each authorized insurer or insurer group issuing personal lines or commercial lines residential property insurance policies in Florida is required to annually file a supplemental report on an individual and group basis for closed claims with OIR. 

2024 Claims Life Cycle Report (Property Claims and Litigation Data Call)

In January 2024, OIR issued the 2024 Claims Life Cycle Reporting (Property Claims and Litigation Data Call) notice to each insurer or insurer group required to submit data. The data call was noticed to 629 companies and 187 companies submitted data filings. OIR issued the data call to all required insurers authorized to do business in the state. A company can be authorized to do business, but have no policies in force, and therefore have no data to submit. A "no data" filing allows OIR to track which companies have responded, but do not have data. 

OIR received data for a total of 658,512 unique claims closed during calendar year 2023. An overview of the claims data reported is below: 

• Total Number of Reported Claims Closed in 2023: 658,512
  
  
• Total Number of Litigated Claims: 64,351
  
  
• Total Number of Non-Litigated Claims: 541,211
  
  
• Non-Catastrophe Claims Reduced (-7.26%) from 2022 to 2023.
  
  
• Total Cost of Indemnity Paid for Claims Closed in 2023: $15.3 Billion
  
  
• Total Loss Adjustment Expenses (LAE) Paid for Claims Closed in 2023: $1.9 Billion
  
  
• Average LAE Paid Across All Perils for Litigated Claims: $10,543
  
  
• Average LAE Paid Across All Perils for Non-Litigated Claims: $2,011
  

Claims Closed During Calendar Year 2023

The 2024 Claims Life Cycle Report captures information about claims closed in 2023 by peril. The table below provides an overview of the closed claims data submitted for the 2024 Claims Life Cycle Report. 

Litigated and Non-Litigated Closed Claims Comparison

Data reported by insurers can provide information about litigation practices throughout the state. The counties with the highest number of claims closed do not necessarily reflect higher numbers of litigated claims. The table below provides information on reported litigation practices. 

Combined View of Indemnity and LAE Paid for Litigated Claims

The total claim amount paid by an insurer includes the total of the indemnity paid and the total LAE paid. Indemnity is the compensation for loss. Loss Adjustment Expenses is the cost involved in an insurance company's adjustment of losses under a policy. The life of a claim begins when a claim is reported by a policyholder to an insurer. The time it takes for an insurer to close a claim varies depending on many factors, including whether or not a claim is litigated. The table below provides information on the cost of litigated claims by peril and by days to close. 

2023 Claims Life Cycle Report (Property Claims and Litigation Data Call)

In January 2023, OIR issued the 2023 Claims Life Cycle Reporting (Property Claims and Litigation Data Call) notice to each insurer or insurer group required to submit data. The data call was noticed to 621 companies and 180 companies submitted data filings. OIR issued the reporting notice to all required insurers authorized to do business in the state. A company can be authorized to do business, but have no policies in force, and therefore have no data to submit. A "no data" filing allows OIR to track which companies have responded, but do not have data. The complete 2023 Claims Life Cycle Report is available here.

OIR received data for a total of 732,390 unique claims closed during calendar year 2022. An overview of the claims data reported is below: 

• Total Number of Reported Claims Closed in 2022: 732,390
  
  
• Total Number of Litigated Claims: 58,395
  
  
• Total Number of Non-Litigated Claims: 534,738
  
  
• Total Cost of Indemnity Paid for Claims Closed in 2022: $11.2 Billion
  
  
• Total Loss Adjustment Expenses (LAE) Paid for Claims Closed in 2022: $1.5 Billion
  
  
• Average LAE Paid Across All Perils for Litigated Claims: $9,934
  
  
• Average LAE Paid Across All Perils for Non-Litigated Claims: $1,576
  

Claims Closed During Calendar Year 2022

The 2023 Claims Life Cycle Report captures information about claims closed in 2022 by peril. The table below provides an overview of the closed claims data submitted for the 2023 Claims Life Cycle Report. 

Litigated and Non-Litigated Closed Claims Comparison

Data reported by insurers can provide information about litigation practices throughout the state. The counties with the highest number of claims closed do not necessarily reflect higher numbers of litigated claims. The table below provides information on reported litigation practices. 

Combined View of Indemnity and LAE Paid for Litigated Claims

The total claim amount paid by an insurer includes the total of the indemnity paid and the total LAE paid. Indemnity is the compensation for loss. Loss Adjustment Expenses is the cost involved in an insurance company's adjustment of losses under a policy. The life of a claim begins when a claim is reported by a policyholder to an insurer. The time it takes for an insurer to close a claim varies depending on many factors, including whether or not a claim is litigated. The table below provides information on the cost of litigated claims by peril and by days to close. 

Florida Public Hurricane Loss Model

Annual Reinsurance Data Call

Florida is the most catastrophe-prone region in the United States with 8,436 miles of shoreline. To spread that catastrophic risk outside of Florida's borders, insurers turn to the global reinsurance market. Reinsurance, at its most basic level, is insurance for insurance companies. Insurers rely on reinsurance to finance the payment of losses and make them better able to withstand major catastrophes, like hurricanes.

Reinsurance is a major driver in the cost of insurance and Florida's domestic property insurance industry is especially reliant on reinsurance to finance the payment of catastrophe losses and is sensitive to hardening reinsurance market conditions. For instance, as much as 40% of the premium a consumer pays goes to purchase reinsurance. When the supply of reinsurance is readily available and affordable, the capacity of domestic property insurers to write and retain business is enhanced, and the premium impact to consumers is modest. 

OIR conducts the Annual Reinsurance Data Call (ARDC) to assess insurers' financial viability in covering catastrophic losses with respect to their catastrophic reinsurance programs. The ARDC consists of four stages: 

• Stage 1 - Collect estimate of what insurers plan to purchase for reinsurance.
• Stage 2 - Collect the actual amount of reinsurance purchased by insurers.
• Stage 3 - Collect information on the reinsurers utilized.
• Stage 4 - Collect information on the reinsurance contracts. 

Based on findings from the ARDC, the year over year risk-adjusted change in reinsurance costs has decreased. More information is below: 

• In 2023, companies reported the risk-adjusted change in reinsurance cost from 2022 was on average +27%. Prior to the 2022 legislative reforms, increases averaged as high as +60%.
• In preparation for the 2024 reinsurance season, OIR met with Bermuda and New York based reinsures to provide an update on the state of the market, highlighting positive data points.
• Preliminary results of the 2024 ARDC signify reinsurance remains costly with early signs indicating price stabilization after a three-year run of increased prices.
• Preliminary results for the 2024 ARDC risk-adjusted change in reinsurance cost from 2023 indicates on average -1.7%, the first decrease in years.
• Florida Hurricane Catastrophe Fund rates, approved by the Florida Cabinet in June 2024, decreased for participating insurers by a statewide average of -8.25%. These rate decreases are, in part, based on modeled loss cost indications, even while exposure grows. 
  

Catastrophe Stress Test

Citizens Property Insurance Corporation Proposed Rate Level Effect - 2025

The proposed 2025 Citizens Rate Filings listed below can be accessed via the IRFS Forms & Rates Filing Search system by searching the file log number or by entering "Citizens" as the "company name" in the "Quick Search" tab. Additional information regarding the proposed 2025 Citizens Rate Filings is available in the Citizens 2025 Rate Media Kit here.

Citizens Property Insurance Corporation - 2024 Public Rate Hearing

OIR conducts an annual public rate hearing for proposed Citizens Property Insurance Corporation rate filings to hear testimony from the company and receive public comment. These hearings are open to the public and input from interested parties will be accepted. Those unable to attend the public hearings are welcome to forward comments to OIR by emailing ratehearings@floir.com with the subject line "Citizens Property Insurance Corporation." Please note, under Florida law, written communications to OIR are public record and subject to disclosure, including being available to the public and media.

Details for the 2024 Citizens Property Insurance Corporation Public Rate Hearing are below:

Information for previous Citizens Property Insurance Corporation rate hearings are below:

• 2023 Citizens Rate Hearing
• 2022 Citizens Rate Hearing
• 2021 Citizens Rate Hearing

Citizens Property Insurance Corporation Depopulation/Takeout Program