JACKSONVILLE, Fla. — The property insurance crisis is one many Floridians are familiar with: insurers completely leaving the Sunshine State and high rates among those that stay. However, things may be turning around soon enough.
“Twelve companies have filed for rate decreases year-to-date, 24 others have filed for flat rates,” Mark Friedlander with the Insurance Information Institute said. “That means stabilizing rates.”
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Friedlander, who spoke with Action News Jax Wednesday about the current insurance market, explained this comes down to multiple factors. Those factors include major legislative change last year cracking down on legal system abuse and insurance claim fraud, as well as Citizens Property Insurance Corp. now awaiting state regulatory approval on a 14% premium price hike.
“Citizens [Insurance] has grown at a record pace. There are over 1.2 million customers today, the largest market share by far in the state, 18.5%,” Friedlander said. “You never want your backstop insurer to be your largest market.”
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Friedlander added that all of these changes, including Citizens rate increases -- which aim to increase market competition for private policies -- mean one thing for policyholders in the Sunshine State.
“More competition equals more competitive rates,” he said.
A spokesperson with Citizens Insurance also got back to Action News Jax, saying after their 14% rate increase recommendation, it now falls on the Office of Insurance Regulation to set the rates, which would go into effect on January 1 of the new year.
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