Florida’s property insurance market is benefiting from the strong legislative reforms passed two years ago to address legal system abuses. These reforms have stabilized rates and attracted new companies to the market, according to a survey by the American Property Casualty Insurance Association (APCIA).
The survey found that 77% of Floridians believe the reforms limiting frivolous lawsuits and excessive legal system abuse were the right decision. This sentiment aligns with the Florida Insurance Commissioner’s announcement that 12 new insurers have entered the market since the reforms were passed.
Florida’s homeowners insurance rates have also shown improvement. According to S&P Global, Florida had the lowest average homeowners rate increase in the nation in 2024, at just 1%. Furthermore, the Florida Office of Insurance Regulation (OIR) reports a significant reduction in homeowners’ rate requests. Additionally, 19 companies have filed for rate decreases since January 2024, and 37 companies have requested no rate increases.
While challenges remain, particularly regarding the high cost of property repairs and hurricane risks, overall signs of improvement are evident. The survey revealed that 67% of Floridians believe the reforms are positively affecting the property insurance market.
However, despite these positive trends, some lawmakers are considering bills that could reverse the progress. These proposals include reintroducing one-way attorney fees and opening new avenues for litigation, which could lead to higher costs and further instability in the market. This comes amid misleading media reports and concerns about industry profitability.
The Florida Office of Insurance Regulation has also found no evidence of insurers refusing valid claims, with most claims closed without payment due to policy deductibles or exclusions for flood damage.
In summary, the legislative reforms in Florida are making a significant positive impact on the state’s property insurance market, and the majority of Floridians support these changes. Continuing with these reforms could lead to further market stability and lower insurance costs.
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