Eight (8) new insurers will now be able to enter the state and begin issuing homeowners insurance policies.
The move was announced by the Florida Office of Insurance Regulation (OIR). As the state continues efforts to stabilize the home insurance market, where rates have skyrocketed in recent years.
“Florida’s insurance market continues to strengthen, showing signs that recent legislation is having positive impacts on the property insurance market,” said Florida Insurance Commissioner Michael Yaworsky in a statement. “The OIR remains steadfast in our efforts to stabilize Florida’s insurance market by implementing legislative reforms and bringing more insurers to the state. We look forward to continuing this work and fostering a competitive market for policyholders.”
The newly approved property and casualty insurers include:
- Ovation Home Insurance Exchange
- Manatee Insurance Exchange
- Condominium Owners Reciprocal Exchange
- Orange Insurance Exchange
- Orion180 Select Insurance Company
- Orion180 Insurance Company
- Sail Major Insurance Company
- Tailrow Insurance Companies
This announcement comes after the state approved six new property insurance companies to enter Florida’s market in January.
Regulators are working to reduce policies from the state’s insurer of last resort, Citizens Property Insurance, amid concerns it may not have enough funds in the event of a natural disaster.
Chase Gardner of Insurify says Florida residents can expect home insurance rates to keep rising this year.
The OIR said Citizens is showing improvement in its financial strength. Its surplus increased by approximately 17.5% compared to previous years, reporting a net income of $746 million in 2023 versus a $2.2 billion loss in 2022.
In February, Governor Ron DeSantis called Citizens “not solvent.”
A new report from Insurify said home insurance rates in Florida are expected to rise 7% this year, pushing the average premium to $11,759.
“Insurers are definitely seeing a healthier financial situation,” Chase Gardner of Insurify said this week. “2023 was a better year for them, but not perfect—it didn’t reach the levels they need to be fully stable, which is why we’ll continue to see price increases into 2024.”</
Insurance agents like Robert Norberg of Arden Insurance in Lantana said competition still hasn’t driven prices down.
“Until those eight companies start writing policies statewide, I don’t see any real benefit for our South Florida residents,” Norberg said. “It remains a challenge, and I tell all my clients they need to do their due diligence and shop the market.”
For the most part, industry experts said the relief residents are hoping for may not arrive until 2025 at the earliest.
Image: Wflx
