Another Florida insurance business is requesting a rate increase and will have a hearing with the Office of Insurance Regulation on Tuesday.
According to documentation filed in Tallahassee, Cypress Property and Casualty Insurance of Jacksonville wants an annual increase of 18.7%.
“This insurance company is reflecting the cost of reinsurance,” Lisa Miller, an industry consultant and former deputy commissioner at OIR, explained.
“When I look at the document associated with this rate hearing, they are passing on the cost of reinsurance.”
Reinsurance protects insurance companies from catastrophic claims.
Miller, an insurance newsletter and podcast host, estimates that the Cypress action will impact thousands of single-family home policyholders.
The proposed rate increase will add around $60 per month to a $4,000 yearly policy.
“Forty cents of every dollar that we as Floridians spend on our property insurance goes to pay for reinsurance,” Miller said in a statement.
After seven years of losses, several Florida insurers recorded profits last year, according to recent reports.
Miller believes that while the spike may be temporary, reinsurance prices will eventually moderate.
“I think the 2024 and 2025 rates will really level off,” he remarked.