In a recent article by the Insurance Journal, the state of Florida’s property insurance market was the topic of discussion. Citing the Florida Office of Insurance Regulation (OIR) latest stability report, it shows that the industry is making some progress, but there are still challenges.
In the report, it was found that net income for Florida insurers, not including Citizens, rose to about $60 million for Q1 2023. This is a turn from the industry’s net losses reported for all of 2022. However, the report also notes that the cost of reinsurance purchased for 2022 jumped by 52% over 2021 rates. Figures for 2023 won’t be finalized until August, but other industry reports have indicated that reinsurance prices have climbed by another 50% at the June and July renewal dates this summer.
The report also found that the number of lawsuits filed by homeowners against insurers has increased in recent months. This may be due to plaintiff firms rushing to file claims lawsuits before House Bill 837, the sweeping tort-reform measure, took effect.
Overall, the report suggests that the Florida property insurance market is still in a state of flux. While there has been some progress, there are still significant challenges that need to be addressed.
The key takeaways from the article:
- Net income for Florida insurers has increased in recent months.
- The cost of reinsurance has also increased significantly.
- The number of lawsuits filed by homeowners against insurers has increased.
- The OIR is monitoring the market and will continue to do so in the future.
- The OIR is committed to ensuring that consumers have access to a stable and competitive insurance market.
Read the full article here: https://www.insurancejournal.com/news/southeast/2023/07/11/729431.htm