What’s going on with property insurance in Florida? Specifically rates, coverage, condominiums, automobile insurance, telematics, flood insurance, and the reinsurance costs that carriers pass along to consumers.

Former Florida Deputy Insurance Commissioner Lisa Miller gets to the heart of the issues with three experienced insurance agents in South, Central, and North Florida who share their insights and suggestions on improving Florida’s challenging property insurance market.

Show Notes

Host Lisa Miller and guests discussed the high premiums affecting homeowners and auto insurance, driven by catastrophic weather, inflation, litigation, and reinsurance costs. Positive trends such as rate decreases and more flexible coverage options are highlighted. The conversation also covered the critical need for flood insurance and the role of the news media in educating the public about insurance complexities and how agents can help the media do so. The episode underscores the importance of transparency and proactive communication in the industry.

Miller’s guests each brought unique perspectives from different regions of Florida:

• Jay Wolfberg, President of We Insure, headquartered in Sunrise. Wolfberg has over a decade of experience in commercial and residential property insurance. He discusses positive trends in the market, including rate decreases and more creative coverage options.
• Anna Regina Myrrha, Agency Principal and Broker at American Insurance Pointe (AIP) in Orlando. Myrrha shares insights on the stabilization of rates and the importance of adapting coverage to meet clients' needs.
• Paul Lalonde, President of Insurance Wagon, a Jacksonville insurance agency. Lalonde provides a perspective on the homeowners as well as the commercial insurance market and the challenges posed by recent legislation affecting condominium insurance.

Overview of the Florida Insurance Market

Host Miller highlighted the current state of the Florida insurance market, where premiums for automobile, homeowners, and commercial insurance are at an all-time high. She identified four main factors driving these rates:

1. Catastrophic Weather: Florida's susceptibility to hurricanes and other severe weather events significantly impacts insurance costs.
2. Inflation: Rising costs of goods and services contribute to higher insurance premiums.
3. Litigation: Legal fees and settlements from lawsuits lead to increased insurance costs.
4. Reinsurance Costs: The cost of reinsurance, which insurers purchase to protect themselves from large claims, is a significant factor in premium pricing, comprising upward of 40% of a homeowners insurance premium.

Host Miller emphasized the uncertainty surrounding reinsurance costs, especially with the ongoing hurricane season, and the potential for higher rates if a significant hurricane occurs.

Positive Trends in Homeowners Insurance

Rate Decreases and Stabilization

Host Miller highlighted a recent report from the Florida Office of Insurance Regulation that 12 companies have requested rate decreases, while 25 have sought to maintain their current rates. For example, American Integrity Insurance Company has announced a nearly 7% rate decrease for a significant number of policyholders... (For full Show Notes, visit https://lisamillerassociates.com/episode-52-agent-roundtable/)