June 25, 2024
Florida tort reform measures are contributing to lower homeowners insurance premium increases for residents, according to Triple-I researchers.
Significant tort reform measures were signed into law in Florida in March 2023. In part because of the reforms contained in HB 837, Triple-I says industry data from the National Association of Insurance Commissioners (NAIC) and the Florida Office of Insurance Regulation (OIR) shows average statewide homeowners premiums were $3,340 in 2023, 80% less than Triple-I’s estimate of $6,000. Tort reform alone did not account for the less severe increases, as Triple-I notes that average premiums were $3,040 in 2022, 41% less than Triple-I’s estimate of $4,300. Triple-I credited lower levels of inflation in replacement costs as a factor for moderating premium increases.
“Average statewide premium increases are running below 2% year-to-date, according to the OIR,” Triple-I says, adding that eight companies have filed for rate reductions while 10 have filed for no rate changes this year. In addition, Triple-I says the state-run Citizens Property Insurance Corp. has depopulated nearly 400,000 policies since last October, demonstrating growing strength in the private market. Property insurers are also coming back to the state; Triple-I says eight insurers have been approved by OIR to enter the Florida market, and other new entrants are expected this year.