Finally, Some Positives in Florida’s Property Insurance Market

Hey everyone, it’s Michael from Singh Insurance and Financial Services, bringing you the latest information on Florida’s property insurance scene. Strap in, because there’s a lot to unpack in this week’s Property Insurance News.

Let’s start with some positive vibes: Florida’s property insurance market seems to be finding its footing. The Florida Office of Insurance Regulation (OIR) has been singing praises about ongoing recovery, with recent legislative reforms paving the way for stability. We’ve got Ovation Home Insurance Exchange joining the ranks, marking the eighth newcomer approved to write homeowners policies in the past year. Plus, according to OIR, insurance companies are reporting better numbers, with lower loss reserve development signaling less uncertainty in the market. Looks like we’re on the right track!

But hold on tight, because there are still some storm clouds on the horizon. Reinsurance pricing continues to be a thorn in our side, driving up homeowners insurance rates. Just take Cypress Property & Casualty Insurance Company’s recent rate hike of 18.7% as an example. They pointed fingers at soaring reinsurance costs from last summer’s renewal as the culprit. However, there’s a glimmer of hope on the horizon, with whispers of plentiful capacity and relatively flat pricing for the upcoming renewal. Fingers crossed for smoother sailing ahead!

Now, let’s talk numbers. The average annual Florida homeowners insurance premium is a hot topic, with wildly different figures floating around. Insurify recently dropped a bombshell, pegging it at a jaw-dropping $10,996, projected to hit $11,759 by year-end 2024. But digging into OIR’s QUASR database tells a different story, with the average annual premium for single-family homes sitting at a more palatable $3,465.90 by the end of 2023. Condo unit owners aren’t far behind, with an average premium of $1,650. It’s all about separating fact from fiction in the world of insurance.

Switching gears, let’s talk Citizens Property Insurance. Despite seeing a 20% dip in new litigation from September 2022 to September 2023, Chief Insurance Officer Jay Adams is cautioning about potential additional costs for claims litigation, especially those pesky Hurricane Ian lawsuits. Legislative reforms might have helped with non-catastrophe litigation, but the aftermath of Hurricane Ian is proving to be a costly affair.

And finally, a heads up from OIR: they’ve issued another industry notice for enhanced catastrophe reporting on Hurricane Ian claims. Property insurance companies better get their data ducks in a row by next Wednesday, April 17 at 12pm ET. Last time around, we saw a whopping 758,644 claims with estimated insured losses of $19.38 billion. Let’s hope for smoother seas ahead!

That’s a wrap for this week’s Property Insurance News. Stay tuned for more updates from the frontlines of Florida’s insurance landscape. Until next time, stay safe and insured. Please contact us if you have any questions or concerns. 352-432-1646

Hey everyone, it’s Michael from Singh Insurance and Financial Services, bringing you the latest information on Florida’s property insurance scene. Strap in, because there’s a lot to unpack in this week’s Property Insurance News.

Let’s start with some positive vibes: Florida’s property insurance market seems to be finding its footing. The Florida Office of Insurance Regulation (OIR) has been singing praises about ongoing recovery, with recent legislative reforms paving the way for stability. We’ve got Ovation Home Insurance Exchange joining the ranks, marking the eighth newcomer approved to write homeowners policies in the past year. Plus, according to OIR, insurance companies are reporting better numbers, with lower loss reserve development signaling less uncertainty in the market. Looks like we’re on the right track!

But hold on tight, because there are still some storm clouds on the horizon. Reinsurance pricing continues to be a thorn in our side, driving up homeowners insurance rates. Just take Cypress Property & Casualty Insurance Company’s recent rate hike of 18.7% as an example. They pointed fingers at soaring reinsurance costs from last summer’s renewal as the culprit. However, there’s a glimmer of hope on the horizon, with whispers of plentiful capacity and relatively flat pricing for the upcoming renewal. Fingers crossed for smoother sailing ahead!

Now, let’s talk numbers. The average annual Florida homeowners insurance premium is a hot topic, with wildly different figures floating around. Insurify recently dropped a bombshell, pegging it at a jaw-dropping $10,996, projected to hit $11,759 by year-end 2024. But digging into OIR’s QUASR database tells a different story, with the average annual premium for single-family homes sitting at a more palatable $3,465.90 by the end of 2023. Condo unit owners aren’t far behind, with an average premium of $1,650. It’s all about separating fact from fiction in the world of insurance.

Switching gears, let’s talk Citizens Property Insurance. Despite seeing a 20% dip in new litigation from September 2022 to September 2023, Chief Insurance Officer Jay Adams is cautioning about potential additional costs for claims litigation, especially those pesky Hurricane Ian lawsuits. Legislative reforms might have helped with non-catastrophe litigation, but the aftermath of Hurricane Ian is proving to be a costly affair.

And finally, a heads up from OIR: they’ve issued another industry notice for enhanced catastrophe reporting on Hurricane Ian claims. Property insurance companies better get their data ducks in a row by next Wednesday, April 17 at 12pm ET. Last time around, we saw a whopping 758,644 claims with estimated insured losses of $19.38 billion. Let’s hope for smoother seas ahead!

That’s a wrap for this week’s Property Insurance News. Stay tuned for more updates from the frontlines of Florida’s insurance landscape. Until next time, stay safe and insured. Please contact us if you have any questions or concerns. 352-432-1646