FLORIDA – Florida’s property insurance market is showing signs of stabilization, according to the president of the Florida Senate. However, experts said an “explosive Atlantic hurricane season” predicted for this year could pose a threat to that positive trend.
In a memo, Florida’s Senate President, Kathleen Passidomo wrote with optimism that the recent reforms regarding property insurance seem to be working.
“We are seeing new insurers and new private capital enter Florida, while large companies recommit to our state, citing recent reforms,” Passidomo wrote in the memo. “For this reason, I was pleased to read in the attached documents that rate filings for 2024 show a slight trend downward for the first time in years, indicating the beginning of stabilization of the property insurance market.”
READ | Full memo from Senate President
Passidomo referred to ten Florida property insurance companies that reported having no intention of raising their rates at all. At least eight companies have also filed a rate decrease to take effect in 2024.
“So the trend is very positive. And it’s just a further sign of what we’re seeing in terms of market recovery,” Insurance Information Institute Spokesman Mark Friedlander said.
Friedlander said the industry is positioned for recovery, with one major factor still threatening progress.
“All the positive momentum we’re seeing in Florida could potentially be reversed if we see a high volume of storm losses during the 2024 hurricane season. We hope that’s not the case,” Friedlander said.
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Colorado State University researcher Dr. Phillip Klotzbach talked at an insurance industry meeting Wednesday in Tampa about the active season that’s expected, according to the Insurance Journal.
Klotzbach pointed to warmer ocean temperatures – a trend we’ve seen for months now – echoing something he posted on X this week.
Today's ocean heat content in the Atlantic Main Development Region for #hurricanes is typically reached on August 1st. We're currently running about 2.5 months ahead of schedule. pic.twitter.com/73FyfjVM3j
— Philip Klotzbach (@philklotzbach) May 15, 2024
According to the Insurance Journal, Dr. Klotzbach said some data now reveals a 62% chance of a major hurricane hitting somewhere on the East Coast, adding that for eastern Florida, that probability is up to 75%.
“That is frightening to see, August temperatures in the beginning of May, that’s something we don’t want to see. And that’s what’s concerning for the forecasters,” Friedlander said.
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Friedlander said the big picture, however, is that Florida’s insurance industry is in a much better financial position and well-positioned to handle storm claims, saying homeowners should not worry about individual claims being paid.