Florida insurance and reinsurance market news

The state of Florida has a new permanent Insurance Commissioner of the Florida Office of Insurance Regulation (OIR), as Michael Yaworsky has now been confirmed by the Financial Services Commission.

We’ve learned that some Florida homeowners and property insurance carriers are using hurricane deductibles as a way to offset some of the costs related to the reinsurance challenges they face at this year’s renewals, with some already imposing specific deductible percentages.

Florida’s Citizens Property Insurance Corporation looks set to more than double the size of its new catastrophe bond issuance, as the target for its first industry loss trigger cat bond, the Lightning Re Ltd. (Series 2023-1) issuance, has now been lifted to between $400m and $500m, Artemis has learned.

Florida’s Citizens Property Insurance Corporation is back in the catastrophe bond market and for the first time the residual market insurer for the state is seeking reinsurance on an industry loss trigger basis, with a $200 million target for this Lightning Re Ltd. (Series 2023-1) issuance.

For reinsurance capital, the rules of engagement in Florida’s property insurance marketplace have been redefined thanks to the wave of significant legislative reforms that have been enacted, according to rating agency Demotech.

All of the changes enacted at the latest Florida Special Session will have a positive impact on the region’s property market, but the benefits will need to be proved before reinsurers and insurance-linked securities (ILS) markets really jump back in, according to experts from across the space.

Following the enactment of significant property insurance legislative reform in Florida and after giving these reforms time to bed-in, catastrophe bonds covering risks in the state are likely to become even more attractive to invest in, according to Dirk Schmelzer of Plenum Investments.

Slide Insurance, the full-stack homeowners property insurtech founded by former Heritage CEO Bruce Lucas, will significantly grow its Florida market footprint, having acquired the renewal rights to over 91,400 Florida homeowners policies from UPC Insurance.

Barry Gilway, the CEO of Florida’s property insurer of last resort Citizens Property Insurance Corporation, believes that after the enactment of new property insurance legislative reforms the Florida market will be more attractive to investor capital and that a “significant depopulation” of Citizens could happen as soon as after the next hurricane season.

The latest estimate for hurricane Ian insured losses based on claims data submitted by primary insurers in Florida now stands at almost $12.6 billion, according to regulator The Florida Office of Insurance Regulation (OIR).