The message from the Florida Chamber of Commerce Insurance coverage Summit was loud and clear: Don’t mess with legislative modifications which have all however restored the state’s property insurance coverage market.
And whilst you’re at it, don’t repeal Florida’s private harm safety (no-fault) auto insurance coverage legislation, both.
“Because of the reforms, PIP is lastly working fairly nicely. We’d like it to maintain shining a light-weight on auto fraud,” stated Stephen Rosansky, an auto insurance coverage protection lawyer with Goldstein Regulation Group who spoke Thursday on the Chamber’s annual summit in Orlando.
Efforts have been made in every of the previous few legislative periods to undo Florida’s PIP system in favor of a bodily harm, tort-based system that some have stated would supply some injured motorists with extra aid. However the measures have didn’t cross, and the destiny of the same invoice within the upcoming 2026 Legislature is unsure.
Others on the 400-person convention, together with a number of the greatest names in property insurance coverage, reinsurance, and the worldwide bond market, stated time and again that the 2022 and 2023 legislative reforms have had a better-than-expected end result – throttling pointless house owner claims litigation whereas prompting a number of charge decreases from carriers.
“I actually consider that the dream is in sight: Florida can have a $100 billion hurricane loss with no considerable improve in insurance coverage costs,” stated John Search engine optimization, co-founder of Fermat Capital Administration, thought of the most important supervisor of disaster bonds on the earth.
The heralded 2022-2023 statuory modifications, handed within the depths of the property insurance coverage disaster, ended assignments-of-benefits agreements and one-way lawyer charges and made it harder for plaintiffs to assert unhealthy religion by insurers. All of that has made loss prices and loss adjustment bills far more predictable and manageable, panelists stated.
“I’ve by no means felt higher about this market,” stated Chris Spencer, govt director of the State Board of Administration, which oversees the Florida Hurricane Disaster Fund.
Whereas some lawmakers and policyholder attorneys have referred to as for rolling again a number of the reforms, that will be “unthinkable,” Spencer stated.
One of many greatest indicators of the rejuvenated Florida property insurance coverage panorama is Residents Property Insurance coverage Corp. Created in 2002 by state lawmakers as an insurer of final resort, Residents had ballooned to the most important provider within the state, with 1.4 million insurance policies in 2023.
At the moment, after a number of new carriers have entered the market within the final two years and have assumed tranches of Residents’ insurance policies, the company is down to only 385,000 insurance policies.
“We’ve by no means been that small,” Residents CEO Tim Cerio stated to applause from the group.
A smaller Residents, which has its charge will increase restricted by legislation, means extra pickings for market-based carriers, a robust indication that the once-teetering Florida property insurance coverage system is functioning as meant. “I’m completely satisfied to report that Residents is now not Florida’s largest insurance coverage firm,” Cerio stated.
The Chamber convention continues as we speak. The 2026 Florida legislative session begins Jan. 13.
Picture: A panel dialogue on the Summit Thursday. (IJ photograph)
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