Drew Dixon
The Florida Chamber of Commerce says insurance industry reforms instituted in Florida two years ago continue to pay dividends, as more property insurance companies are entering the market.
Chamber officials say insurance premiums are at least stabilizing in the wake of the key regulatory changes in 2023. The number of policies covered by Citizens Property Insurance Corp., the state-backed insurance option for residents and businesses who can’t get coverage from for-profit companies, is also starting to decline due to failing demand.
“Florida remains a model for the nation, showing that long-term, market-based solutions pay off for consumers and the economy,” said Mark Wilson, President and CEO of the Florida Chamber. “By reducing red tape and the risk of meritless and limitless litigation, Gov. Ron DeSantis and recent legislative leaders have made an immeasurable impact benefitting all of Florida.”
Insurance Commissioner Michael Yaworsky has acknowledged that more residential homeowner insurance companies are entering the Florida market since the reforms. Two new companies joined the market in June, while a total of 14 additional companies have entered the Florida insurance market in the past two years.
“Our market is becoming more and more competitive, and we continue to see great progress in rate requests with over 120 residential filing requests for rate decreases or 0% increases so far this year,” Yaworsky said.
DeSantis in December 2022 signed SB 2A, which reduced litigation while eliminating one-way attorneys fees, elements that supporters of the legislation said forced many insurers out of business in Florida. The move has reduced litigation by about 30% in the state.
Critics, however — including Democratic lawmakers — criticized the provisions restricting lawsuits, arguing they impede the ability of homeowners to recover from unscrupulous insurers.
But Tim Cerio, the President, CEO and Executive Director of Citizens, said the Citizens insurance policy count is a key indicator that things have turned around for property insurance companies in Florida.
As of June, Citizens reported that they had 777,592 policies in the state. That’s down some 36% from a year ago and is a 44% decline from the peak of the troubled property insurance market in October 2023, when there were 1.41 million policies with Citizens.
“It is simply irrefutable that reforms championed by the Governor and passed by the Legislature have had a tremendous impact on improving this market,” Cerio said.
