White Paper

How Florida’s Homeowners’ Insurance Market is Rebounding: Legislative Reform, Actuarial Insight, and a Path Forward

After nearly a decade of instability, Florida's homeowners’ insurance market is showing signs of recovery. Here's what carriers in other states can learn from the turnaround.

White Paper Summary

Few property insurance markets in the United States have endured as much turbulence over the past decade as Florida’s. Between 2017 and 2024, 10 carriers became insolvent outright, with an estimated 10 more disappearing through what industry observers call “shadow insolvencies”; consolidations within holding company families where financially distressed carriers were absorbed to keep a single entity afloat or where companies executed a controlled runoff.

The crisis was so severe that homeowners’ premiums began consuming approximately 10% of household income for many Floridians, and when combined with the state’s elevated auto rates, total insurance costs reached almost 15% of household budgets. Reinsurers walked away from the table. Capital became scarce and expensive. And consumers, carriers, and legislators alike were left searching for answers.

“What largely plagued the Florida homeowners market surrounded the assignment of benefits issue — or abuse, depending on who was asked — and how that evolved over time,” said Art Randolph, Principal and Consulting Actuary at Pinnacle Actuarial Resources.

 

To learn more about Pinnacle Actuarial Resources, Inc., please visit their website.

A full-service actuarial firm, Pinnacle provides your business with data-driven research backed by clear communication. Our expert Consultants work with you to look beyond today’s numbers in planning for tomorrow.

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