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As Florida property owners continue to deal with skyrocketing premiums that are strangling budgets and threatening future development, the state’s insurance commissioner is trying to shine a spotlight on progress made in 2023 that, he says, “promote a stable and competitive insurance market.”
In an end-of-year statement released Dec. 29, Michael Yaworsky, the head of the state’s Office of Insurance Regulation, laid out several legislative accomplishments approved last year and efforts taken by his office as proof that the property insurance crisis is easing. These actions, Yaworsky says, “reduce litigation, increase consumer choice and ensure the long-term stability of the market.”
While Yaworsky is optimistic about the future of the insurance market, property owners across the state and those in the industry will likely reserve judgement until insurance bills start rolling in. This reluctance is due to the historic challenges they have faced in recent years, with premiums rising, more demands being placed on them when shopping for coverage and fewer options to choose from.
The poster child of the market’s troubles has been the state-run Citizens Property Insurance Corp. Citizens was created as the insurer of last resort but became the go-to source for property insurance as more and more companies quit writing policies in the state. As of Nov. 30, Citizens had 1.26 million policies in place, up from 1.14 million on Dec. 31, 2022 and 759,305 on Dec. 31, 2021. That increase — up 58.42% in two years — has added to the fear that the state’s teetering system could collapse because as Citizens’ customer number rises so did its liabilities.
That said, the state’s legislature and OIR have made some progress toward easing pressure, reforming how much attorneys can collect to cut down on lawsuits and working to expand the number of companies doing business in the state.
Yaworsky was appointed to his position in February. These are the measures he says are improving the prospects of the state’s property insurance market:
Since reforms were passed earlier this year, Yaworsky says OIR has approved six property and casualty insurers to enter the market: Condo Owners Reciprocal Exchange; Orange Insurance Exchange; Orion 180 Select Insurance Co.; Orion 180 Insurance Co.; Mainsail Insurance Co.; and Tailrow Insurance Co.
In May, Gov. Ron DeSantis signed three bills that “strengthen consumer protections within Florida’s property insurance market and expand the state’s home hardening and hazard mitigation programs.”
In 2023, OIR through the Citizens Depopulation Program approved insurers to assume 650,399 policies from Citizens, which is more than an 800% increase from 2022. The program allows new and existing insurance companies to assume policies currently covered by Citizens in an attempt to transfer policies back to the private insurance market.
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