According to Michael Yaworsky, head of the state’s Office of Insurance Regulation (OIR), Florida’s insurance market is not just surviving but strengthening in the wake of Hurricanes Helene and Milton. Yaworsky’s recent statements offer optimism about the state’s property insurance market, rebutting concerns that Florida is headed toward a crisis.
Yaworsky’s comments arrive after recent hurricanes, including the devastating Hurricane Milton, which caused significant property damage across the state. Despite the severity of the storms, Yaworsky pointed to several “encouraging developments” that showcase the resilience of Florida’s insurance market. He highlighted that 15 insurance companies filed for rate decreases before Milton hit, a sign that the market is stabilizing.
“Claims of the demise of Florida’s property insurance market are exaggerated,” said Yaworsky. “OIR has, and will continue to work with all carriers in the state to bolster the significant progress that has been made.”
USAA Reaffirms Its Commitment to Florida
A significant highlight in Yaworsky’s update was USAA’s reaffirmed commitment to Florida’s marketplace. Following discussions with Governor Ron DeSantis and OIR representatives, USAA indicated its confidence in the reforms enacted by Florida’s legislature in 2023, which have contributed to a more stable insurance environment. USAA emphasized that they are “optimistic the 2023 legislative reforms will bring about a more robust, stable environment” and are “committed to our members in Florida.”
This continued investment by major insurance companies, despite the potential risks posed by recurring hurricanes, signals a shift toward stability in a market long plagued by volatility.
Decrease in Rate Hikes and Citizens Depopulation
One of the most promising indicators of improvement is the significant slowdown in rate increases. The 1.6% year-over-year increase in insurance premiums marks a notable drop from the 7% spike seen in previous years. Additionally, Citizens Property Insurance Corporation, the state’s insurer of last resort, has successfully moved over 1 million policies to private insurers, with plans to offload another 235,000. This “depopulation” effort is part of Florida’s strategy to reduce reliance on state-backed coverage and promote a more sustainable private insurance sector.
Hurricane Milton’s Impact Still Unfolding
While Yaworsky’s optimism is shared by many, the true test of the market’s resilience will come as the industry assesses the damage from Hurricane Milton. Governor Ron DeSantis has tempered expectations about the immediate impact of recent storms on property insurance, noting that federal flood insurance is likely to bear the brunt of claims related to storm surge and flooding. However, he reiterated that Florida’s insurance market is “in good shape” due to the reforms introduced following Hurricane Ian.
As the state continues to recover from Hurricane Milton, attention will soon turn to how the insurance industry responds. The extent of the damage, especially in areas affected by tornadoes and storm surge, remains to be fully understood. Nevertheless, Yaworsky’s outlook offers hope for Florida homeowners and investors alike, signaling that the insurance market is on a “glidepath to sustained growth” despite the challenges posed by hurricane season.
A Promising Future Amidst Uncertainty
While challenges remain, especially in the face of recurring storms, Florida’s insurance leaders are confident that the market will continue to strengthen. With companies like USAA showing renewed commitment and rate hikes slowing down, the future of the state’s property insurance market looks more promising than it has in years. As Yaworsky summed up, “We are on the right path, and we will continue working to ensure that Florida remains a competitive and stable marketplace for insurance providers.”
Florida’s property owners, for now, can cautiously breathe a sigh of relief as the market shows signs of resilience, even in the face of nature’s fury.