Eight new insurance companies are now set to enter the state of Florida and begin writing homeowners insurance policies after receiving approval this week.
The Florida Office of Insurance Regulation (OIR) on Wednesday announced that it has approved eight property and casualty insurers to enter the state's insurance market. The move is part of an attempt to stabilize the home insurance market in the state, which has seen soaring rates in past years.
"Florida's insurance market continues to strengthen, showing signs recent legislation is having positive impacts to the property insurance market," Florida Insurance Commissioner Michael Yaworsky said in a statement shared on X (formerly Twitter).
"OIR remains steadfast in our efforts to stabilize Florida's insurance market by implementing legislative reforms and recruiting more insurers to the state. We look forward to continuing this work and promoting a competitive market for policyholders," the statement continued.
Today, OIR issued an update on Florida's property and casualty insurance market. Following legislative reforms, eight property and casualty insurers have been approved to enter the market.
— Florida Office of Insurance Regulation (@FLOIR_comm) April 3, 2024
➡️ Read OIR's update here: https://t.co/OYWGIwMYEV pic.twitter.com/UkFS1m12Ij
Which Home Property Insurers Are Entering the Florida Market?
The eight insurance companies approved to enter the Florida market include Condo Owners Reciprocal Exchange, Mainsail Insurance Company, Manatee Insurance Exchange, Orion180 Insurance Company, Orion180 Select Insurance Company, Orange Insurance Exchange, Ovation Home Insurance Exchange, and Tailrow Insurance Companies.
The move comes after Florida approved the entry of six other property insurance companies in January.
In addition to approving the entry of the insurance companies, the OIR approved the acquisition of Florida domestic property and casual reciprocal insurer, Trusted Resource Underwriters Exchange. The acquisition would allow the company to expand its underwriting capacity in the state.
"As a result of OIR's approval of the acquisition, more than $1.25 billion of capital is being invested into Florida's property and casualty insurance market," the agency said.
Regulators in Florida are working to offload homeowners policies from the Citizens Home Insurance, the state's insurer of last resort. The approval is also part of an effort to bring down the prices of homeowners insurance in Florida.
Homeowners in the state are expected to pay an average of nearly $12,000 for homeowners insurance in 2024, up from 7% in 2023 and nearly five times more than the national average, WFLA reported, citing data from Insurify.
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