The state of Florida created an optional hurricane reinsurance program called (FORA) Florida Optional Reinsurance Assistance. It allows insurers to purchase reinsurance at reasonable rates.
Now, new evidence just released by the state shows the news program may help stabilize some of the high-cost Floridians are seeing with their property insurance.
The Florida Office of Insurance Regulation (OIR) says several carriers in the state are noticing a decline in their reinsurance prices for the first time in years.
OIR said cost went down by 1.7 percent from 2023.
Florida Insurance Commissioner Michael Yaworksy praised the new information as he reiterated a report from earlier this year showing 12 insurance companies asked for a rate decrease and 24 keeping rates flat.
Even State Farm announced a rise in opportunities to underwrite more property businesses in Florida.
Also, OIR is working with other companies, such as Progressive, to help bring in and maintain business “so that all Floridians may benefit from a strong market,” said Yaworsky.
Also of note, Progressive Insurance executives met with the Insurance Commissioner and have committed to continuing to invest in their businesses underwriting in Florida.
Another positive indicator came from OIR, which has seen more policies being taken off from the state insurer, Citizens Property Insurance, in the range of 700,000 policies, picked up by the private market.
However, insurance analysts point out that Florida is not yet clear. With the peak of hurricane season approaching, and until the season shows a decline in hurricane damage, other insurance carriers are taking a wait-and-see approach to whether they will drop their rates.
Commissioner Yaworskty is optimistic about the recent news and says with reinsurance helping stabilize prices, Florida’s property insurance market is showing signs of “strengthening,” said Yaworsky.
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