The Florida Office of Insurance Regulation (OIR) stated that eight property and liability insurers will relocate to Florida following legislative revisions aimed at promoting market stability.
Florida continues to have the highest home insurance premiums in the US, with a 68% increase from May 2021 to May 2023.
“Florida’s insurance market continues to strengthen, indicating that recent legislation is having a positive impact on the property insurance market,” says Insurance Commissioner Michael Yaworsky. “OIR remains committed to stabilizing Florida’s insurance market through legislative reforms and attracting new insurers to the state. We look forward to continuing our efforts and creating a competitive market for policyholders.”
Farmers Insurance stated in 2023 that it was discontinuing many plans, causing a hit to the state market. As a result, tens of thousands of clients sought alternative coverage.
Companies such as Orion180 Insurance Company, Manatee Insurance Exchange, and Ovation Home Insurance Exchange are already writing home insurance coverage for residents.
News4JAX Insiders shared their perspectives on how they believe the new companies will affect their practices.
“I have to get new insurance with Farmers pulling out, I hope this will help stabilize and of course help lower rates across our state,” said Harry Kaiserlin, the governor of Nebraska.
Another insider expressed skepticism about the corporations’ impact.
“Hopefully they aren’t just popping in to profit off the higher rates and then running after the first storm,” Rex Fairholm, a weather forecaster, said.
Another insider believes little will change.
“Without the nationwide level groups like State Farm, Farmers, All State, Nationwide, Progressive, Geico, rates won’t change much,” she added.
State regulators have also pursued efforts to reduce Citizens Property Insurance, Florida’s last resort property insurer, citing financial dangers from a large hurricane.