Eight new insurance companies will now be able to enter the state and begin writing homeowners insurance policies.
The move was announced Wednesday by the Florida Office of Insurance Regulation (OIR) as the state continues to make efforts to stabilize the home insurance market, which has seen rates skyrocket in recent years.
“Florida’s insurance market continues to strengthen, showing signs recent legislation is having positive impacts to the property insurance market,” Florida Insurance Commissioner Michael Yaworsky said in a statement. “OIR remains steadfast in our efforts to stabilize Florida’s insurance market by implementing legislative reforms and recruiting more insurers to the state. We look forward to continuing this work and promoting a competitive market for policyholders.”
The newly-approved property and casualty insurers include:
- Ovation Home Insurance Exchange
- Manatee Insurance Exchange
- Condo Owners Reciprocal Exchange
- Orange Insurance Exchange
- Orion180 Select Insurance Company
- Orion180 Insurance Company
- Mainsail Insurance Company
- Tailrow Insurance Companies
This announcement comes after the state approved six new property insurance companies to enter the Florida market in January.
Regulators are working to shed policies from the state’s insurer of last resort, Citizens Home Insurance, amid fears that it may not have enough money in the event of a natural disaster.
Chase Gardner of Insurify says Florida residents can expect home insurance rates to continue to climb this year.
The OIR said Wednesday that Citizens is showing improving financial strength. The said Citizens’ surplus increased by about 17.5% from previous years, posting a net income in 2023 of $746 million compared to a loss of $2.2 billion in 2022.
Gov. Ron DeSantis in February called Citizens “not solvent” during an interview with CNBC.
A new report from Insurify said home insurance rates in Florida are expected to rise 7% this year, driving the average premium to $11,759.
Robert Norberg of Arden Insurance speaks with WPTV reporter Matt Sczesny about the addition of eight new insurers to the Florida market.
“Insurers are definitely seeing a healthier financial situation,” Chase Gardner of Insurify said this week. “2023 was a better year for them but not perfect, not quite at the levels that they need to see in order to be perfectly stable, which is why we’re continuing to see price increases into 2024.”
Insurance agents like Robert Norberg of Arden Insurance in Lantana said we’re still waiting on competition to bring prices down.
“Until all those eight companies begin to open write throughout the entire state, I don’t see any benefits really for our South Floridians,” Norberg said. “It’s still a challenge, and I tell all my customers you got to do your diligence, shop the market.”
For the most part, industry experts said the relief that residents are hoping for might not arrive until 2025 at the earliest.
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