At Singh Insurance & Financial Services, we are dedicated to keeping our clients informed about the ever-changing landscape of the insurance industry. This past year has been transformative for Florida’s insurance market, thanks to significant efforts spearheaded by the Florida Office of Insurance Regulation (OIR) under the leadership of Commissioner Mike Yaworsky.
Key Achievements in Florida’s Insurance Industry
Commissioner Yaworsky emphasized the progress made in stabilizing the property insurance market, strengthening the health insurance sector, and protecting consumers. With reforms championed by Governor Ron DeSantis, the Florida insurance market is showing resilience, growth, and improved consumer protections.
Legislative Reforms Drive Stability
Over the past three years, Florida has enacted five landmark bills addressing tort reform and consumer protection. These measures include:
- Expanding home-hardening programs to encourage hurricane-resistant upgrades.
- Eliminating one-way attorney fees and reducing frivolous lawsuits.
- Strengthening consumer protection laws to ensure fairness.
These reforms have fostered market stability and attracted nine new property and casualty insurers to Florida.
Improvements in Property Insurance
Florida’s property insurance market has seen notable achievements, including:
- Policy Growth: Over 7.55 million residential policies are currently in force.
- Rate Stability: Homeowners’ rate increases now average just 1.2% monthly, compared to 14% a few years ago.
- Private Market Strength: Nearly 428,000 policies were transitioned from Citizens Property Insurance Corporation to private insurers, reducing state-backed exposure by nearly $200 billion.
Reduced Reinsurance Costs
Reinsurance costs—critical for insurers managing risks—have declined. For 2024, risk-adjusted costs decreased by 1.7%, a significant improvement compared to 2022’s 27.03% increase. These reductions benefit both insurers and policyholders.
Strengthened Consumer Protections
OIR has enhanced its consumer protection efforts, resulting in:
- Enforcement: Over $2.8 million in fines issued in fiscal year 2023-24.
- Restitution: More than $8 million secured for Florida consumers.
- Investigations: 20 market conduct examinations and 620 investigations completed.
Health Insurance Market Growth
Florida’s health insurance market expanded by 35% in 2024, serving 4.2 million consumers. Every county now offers competitive options, with at least three carriers available. Florida’s presence on Healthcare.gov remains the largest in the nation, ensuring robust coverage options.
Progress in Workers’ Compensation
For the eighth consecutive year, Florida businesses benefit from lower workers’ compensation rates. A statewide decrease of 1% goes into effect on January 1, 2025, reducing costs for employers.
National Recognition
In 2024, the National Association of Insurance Commissioners (NAIC) accredited Florida for a full five years, recognizing the state’s excellence in solvency regulation and financial oversight.
Looking Ahead
As the Florida insurance market continues to evolve, Singh Insurance & Financial Services is here to guide you through these changes and ensure you have the right coverage for your needs. For more information or a personalized insurance review, visit singhinsurancegroup.com or call us today for an instant quote.
Stay informed and stay protected with Singh Insurance & Financial Services!