The Insurance Information Institute announced that premium growth has slowed for Florida homeowners following reforms in 2022, which were implemented in response to a surge in litigation. Citizens Property Insurance Corp became the last resort for residential insurance as other insurers either failed or abandoned Florida. The announcement was made in a June 26 blog post.
According to the Insurance Information Institute, inflation and challenges within the fraud and legal systems caused a spike in homeowner insurance premiums. The COVID-19 pandemic and the Ukraine war were major driving forces behind high inflation. These effects, combined with the damage caused by Hurricane Ian, led to six insurance carriers becoming insolvent.
Even though Florida homeowners represented only 15% of the nation's litigation claims, they accounted for 71% of the nation's homeowner claims in 2022, according to the state’s Office of Insurance Regulation (OIR). This situation prompted the Florida legislature to re-examine excessive fees and false claims reforms. These reforms ended appraisal awards in bad-faith lawsuits and eliminated fees in property insurance litigation involving one-way attorneys.
Reforms of the legal system and moderating inflation have decreased the average annual premium from $3,040 in 2022 to $3,340 in 2023. Claim filings are now running below 2%. The OIR states that ten domestic carriers have filed for no increase, while eight domestic carriers filed for decreases.
The Insurance Information Institute is an organization that disseminates information regarding insurance through their blog, website, and social media. They provide materials to educate and inform businesses, individuals, and families on sound insurance information.