The Florida Insurance Market Welcomes Its Eighth New Property Insurer

The Florida Insurance Market is expanding, as yet another property and casualty insurer has gained approval to do business here. This makes the eighth new insurer to come to Florida following legislative reforms aimed at stabilizing the market, according to state insurance regulators.

The Florida Office of Insurance Regulation (OIR) announced the approval of Ovation Home Insurance Exchange, adding to a list that includes Condo Owners Reciprocal Exchange, Mainsail Insurance Company, Manatee Insurance Exchange,  Orange Insurance Exchange, Orion180 Insurance Company, Orion180 Select Insurance Company, and Tailrow Insurance Companies.

Insurance Commissioner Michael Yaworsky expressed optimism about the market's strengthening, citing recent legislation's positive impacts. OIR also approved the acquisition of Florida's domestic property and casualty reciprocal insurer, Trusted Resource Underwriters Exchange, injecting over $1.25 billion of capital into the state's insurance market.

Notably, Citizens Property Insurance Corporation exhibited financial improvement, with a surplus increase and net income in 2023, contrasting with previous losses. OIR hopes to maintain interest in the Citizens depopulation program, having approved 13 companies to assume policies, reducing Citizens' exposure significantly. Additionally, Florida's domestic property insurance companies reported almost breaking even in net underwriting in 2023, marking a significant improvement from previous years of losses. Loss reserve development has decreased, indicating a lower degree of uncertainty in the property insurance market. Moreover, the Florida Hurricane Catastrophe Fund rates are decreasing for participating insurers by an average of 7.38%, despite growing exposure.

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