Home insurance premiums in Florida rose at a much lower rate than originally projected in 2022 (41 percent less) and 2023 (80 percent less), according to analysis by researchers at the Insurance Information Institute (Triple-I).
The reduced premium averages reflect the impact of legislative legal system abuse reforms as well as lower levels of inflation in replacement costs, the data showed. Both factors were not anticipated at the time Triple-I’s estimates were made.
Industry data from the National Association of Insurance Commissioners (NAIC) and Florida Office of Insurance Regulation (OIR) shows average statewide home premiums were $3,340 in 2023, 80 percent less than Triple-I’s estimate of $6,000.
In 2022, average Florida premiums were $3,040, 41 percent less than Triple-I’s estimate of $4,300.
Triple-I has noted significant improvements in the Florida home insurance marketplace this year due to legislative reform.
The average statewide premium increases are running below 2 percent year-to-date, according to the OIR.
Eight companies have filed for rate reductions with the OIR while 10 have filed for no rate change this year.
State-backed Citizens Property Insurance Corp. has depopulated nearly 400,000 policies since last October to private insurers, highlighting the private market’s capacity to take on more risk.
Eight property insurers have been approved by the OIR to enter the Florida market, with other new entrants expected this year.