The Florida Office of Insurance Regulation (OIR) announced several positive developments in the state's property insurance market, including the approval of Trident Reciprocal Exchange as the ninth new insurer since the 2023 reforms. National carriers are also increasing their presence in Florida, even as they scale back operations in other regions.
According to recent rate filings, increased participation in the Citizens Property Insurance Corporation Depopulation Program, and reduced reinsurance costs indicate signs of improvement in Florida's property insurance market. As of August 1, 2024, the 180-day average rate request for homeowners' insurance rates is 1.2%, with twelve companies filing for rate decreases and twenty-four companies filing for zero percent increases, affecting 1.8 million policies. Additionally, the risk-adjusted change in reinsurance costs has decreased by an average of 1.7% from 2023, marking the first decline in years, according to a press release by OIR.
"Today’s announcements are a further indication of the continued strengthening of Florida’s property insurance market," said Insurance Commissioner Michael Yaworsky, according to a press release by OIR. "OIR will continue to work with Florida-based and national carriers, like Progressive, to recruit and retain business so that all Floridians may benefit from a strong market."
OIR reports that approximately 7.43 million residential insurance policies are currently in force, with 83% written by admitted property insurers. The Citizens Depopulation Program has seen significant growth, with OIR approving insurers to assume 768,692 policies from Citizens in 2024, representing an 858% increase since 2022. To date, 132,445 policies have been removed from Citizens, reducing its exposure by over $64 billion.
Yaworsky was appointed as Florida Insurance Commissioner in March 2023 by Governor DeSantis and the Financial Services Commission. Before this role, he served as Vice Chairman of the Florida Gaming Control Commission and as Chief of Staff at the Florida Office of Insurance Regulation.