JACKSONVILLE, Fla. – Florida’s insurance market is currently in the best financial shape it has been in nearly a decade, according to industry analysts.
However, new data from the state reveals that homeowners in every county in North Florida are still facing higher premiums compared to last year.
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Recent data released in the State’s Property Insurance Stability Report shows that while the market is stabilizing, homeowners aren’t yet seeing the benefits in their wallets.
The 26-page report analyzes trends in Florida’s insurance market and concludes that the Office of Insurance and Regulation continues to observe overall market stabilization following the significant legislative reforms of 2022 and 2023.
Notably:
• 10 companies have filed for a zero percent increase in premiums
• Nine companies are expected to implement rate decreases in 2024
• After years of consecutive underwriting losses, many insurers reported net profits in 2023
The report also highlights a decline in the number of lawsuits burdening the property insurance industry. Despite these positive signs, data shows that North Florida homeowners are still paying more for their property insurance premiums than they did last year.
In Duval, Clay, St. Johns, and Nassau counties, property insurance premiums rose by an average of 13.5% from 2023 to 2024.
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News4JAX spoke with Mark Friedlander from the Insurance Information Institute to get his perspective on these increases.
When asked about the rising premiums and Friedlander acknowledged consumer concerns but noted that the market is moving in the right direction.
“It’s understandable the concerns of consumers when they see renewals that are still pretty high, but the good news is the market’s heading in the right direction,” Friedlander said.
Friedlander also emphasized that insurance companies now have adequate levels of reinsurance to cover multiple hurricanes this season, putting the industry in a strong position to pay claims.
We also inquired about the potential impact of Hurricane Debby on the insurance industry.
Friedlander indicated that the damage from the hurricane, while significant, is considered manageable within the current reinsurance structures.
“This is a very manageable loss event for the property casualty industry,” he explained, adding that reinsurance coverage would effectively cover the losses, meaning insurers won’t need to dip into their reserves.
An analysis of the Property Insurance Stability Report also reveals that Central Florida counties are experiencing similar increases in property insurance premiums. As of now, it remains unclear when Florida homeowners will see a decrease in their overall annual premiums.
This comes as Florida Senator Rick Scott has proposed legislation to give homeowners a tax deduction on their yearly premiums. It would be an above-the-line tax deduction of up to $10,000 at primary residences.
It’s called the Homeowners Premium Tax Reduction Act.
How do you feel about analysts saying Florida’s insurance market is in good shape despite the constant rise in premiums? Let us know below. Your response may be featured on a Channel 4 newscast.