Bridging the Gap Between Perception and Reality in Florida’s Property Insurance
By Brewster Bevis
The Associated Industries of Florida (AIF)’s Center for Political Strategy recently released the results of our newest statewide poll. The findings revealed that Florida voters ranked property insurance costs as their most significant concern, surpassing all other issues facing the state.
While this aligns with previous poll results, I’ll admit it caught my attention when reviewing the findings. I understand this concern completely. Inflation has clearly hit our state hard, having a tangible impact not just on insurance, but on all expenses, from groceries, rent, and building materials to property values — affecting both Florida businesses and consumers.
However, the property insurance market has recently demonstrated substantial improvement, and just a few weeks ago, Gov. Ron DeSantis highlighted property and auto insurance rate decreases in South Florida.
As Floridians, we understand the importance of a stable property insurance market for our well-being and economic prosperity. However, a disconnect remains between public perception and the positive progress of Florida’s property insurance sector. It’s crucial for consumers to understand the encouraging developments in stabilizing and improving insurance in our state.
Unfortunately, the broader sentiment about rising costs in the economy often overshadows the tangible progress Florida’s insurance market has made in recent years. Data from the Florida Office of Insurance Regulation (OIR) show a more promising picture.
Over the past two years, thanks to legal system reforms passed by the Florida Legislature and signed into law by Gov. DeSantis, we’ve seen a positive shift in market stabilization efforts. Key indicators, such as 11 new insurers entering the market, a decline in insolvencies, along with new legislative measures, indicate a market recovering rather than declining.
More importantly, policyholders are already benefiting. According to S&P Global, Florida had the lowest average statewide homeowners rate increase in the nation at just 1%, while most states experienced double-digit increases, some exceeding 20%. The OIR also reported 18 companies filing for rate decreases and 35 companies requesting no rate change over the year. This proves that the legal reforms are working.
The state’s commitment to fighting fraudulent claims, a key cost driver, has been yielding promising results. These efforts aim to keep costs down while ensuring legitimate claims are handled promptly and fairly.
Even with stable or declining insurance rates, consumers might still see property insurance costs increase as property values grow. As Florida attracts new residents and businesses, property values rise, increasing the required insurance coverage and premiums. Although concerning for homeowners and business owners, it’s critical to acknowledge this factor when discussing insurance costs and the current state of Florida’s insurance market.
To bridge the gap between Floridians’ perception and reality, it is important to communicate the improvements happening and the positive advancements taking place in our state’s property insurance market.
I know that Florida consumers and businesses have felt the impact of increased costs in many areas in recent years, including property insurance. This is a time of evolution for the Florida insurance market. These positive transformations need to be communicated to and acknowledged by all Floridians.
Brewster Bevis is president and CEO of Associated Industries of Florida.
