Florida Insurance Market Remains 'Stable', Says Commissioner

Florida Insurance Commissioner Mike Yaworsky is assuring homeowners that the state’s property insurance market remains "stable," despite the challenges posed by unpredictable weather patterns. This message comes in the wake of recent rating upgrades for several key Florida tax bonds, which, according to the official press release, further underscore the strength and resilience of the state’s insurance system.

The upgrades, announced by Moody’s Ratings, reflect positively on the Florida Hurricane Catastrophe Fund, Citizens Property Insurance Corporation, and the Florida Insurance Guaranty Association—entities that play a central role in Florida’s property insurance infrastructure. These upgrades are seen as an important indicator that the market is on solid ground.

“These recent upgrades continue to show that Florida’s insurance market is maintaining stability. Even with Florida’s unpredictable weather, a major bond rating agency agrees that several of Florida’s tax bonds are strong and have ample capacity to cover claims," Insurance Commissioner Mike Yaworsky said.

According to the release, the following upgrades were issued for Florida’s insurance-related bonds:

• Florida Hurricane Catastrophe Fund (FHCF): Bonds upgraded to Aa2 from Aa3.
• Citizens Property Insurance Corporation Coastal Account: Bonds upgraded to Aa2 from A1.
• Florida Insurance Guaranty Association (FIGA): Bonds upgraded to Aa2 from A2.

These upgrades signify a boost in the financial outlook for Florida’s insurance system, signaling to investors and consumers alike that the market is on stable footing.

In addition to the bond rating improvements, recent data from the Office of Insurance Regulation (OIR) further suggests market stability.

• 25 filings for 2024 are requesting rate reductions, while 49 filings have asked for no rate increase.
• The 30-day average rate increase for homeowners is just 0.8%, a significant drop from last year’s 7.03%.
• The 180-day average rate has also dropped to 1.3%, compared to 8.08% last year.

These figures show that the rate environment for homeowners is improving, with fewer increases and even some reductions. Additionally, the cost of reinsurance — a key factor influencing insurance premiums — has decreased, with a -0.7% reduction in 2024, compared to last year’s 27% increase.

Despite the challenges posed by hurricanes and natural disasters, Commissioner Yaworsky emphasized that the OIR remains committed to monitoring the market and protecting consumers. In response to hurricanes Helene and Milton, the OIR issued emergency orders to assist homeowners facing policy cancellations or nonrenewals.
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Florida homeowners facing concerns about their policies or needing assistance can contact the OIR at [email protected].