TALLAHASSEE, Fla. – There may be some positive signs in Florida’s ongoing insurance crisis, according to some who are watching.
One such sign comes from the state’s insurance consumer advocate.
“There are at least two insurance companies that have recently applied to the Insurance Regulatory Office to reduce their overall rates,” Tasha Carter said.
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She said that the naming of these companies is confidential, as the Insurance Regulatory Office begins studying the application.
“They made those filings based on their expectations that they would experience fewer claims, fewer claims expenses, and fewer claims referred to litigation,” Carter said, referring to litigation reforms passed more than a year ago.
Republicans had expected the reforms to attract more businesses and bring more competition, but the time frame ranges from 18 months to five years, according to some estimates.
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“It will take some time for competition to kick in and see prices come down,” Florida State University professor Charles Nice said.
One sign he sees is in the reinsurance market.
“These rates have stabilized, they were rising and they continued to rise until 2023, they have stabilized,” Ness said. “The expectation is that they will come back down which could lead to some easing of rates after the storm season in 2024.”