By Insurance Companies in some parts of the world have been enjoying unimaginable profits year on year. When you come to Africa; my homeland Ghana, it is even now that people are buying into the idea of insurance as a form of investment. The majority of the people see the insurance companies gaining full benefits of most policies as not much claims are made unless death which is inevitable or accidents or natural disaster which is rare.
This cannot be described here in Florida. Over the years there has been a severe strain on the property insurance market. More than 30 home insurance providers have either stopped offering new policies or have totally stepped down from the market in the last three years; ultimately forcing homeowners in Florida to probably catch a break in their insurance premiums.
With years of rate increasing, some insurers have announced a zero-percent increase in their premiums forcing at least nine to file a rate decrease for customers in 2024.
What is The primary Cause?
What could be the underlying cause for this year on year insurance menace in Florida? Well, people have diverse views.
On the political front, While Democrats are linking climate change as the driving force behind rising premiums, Republicans see high government spending and inflation is the main contributor.
Generally Florida faces increased threat of hurricanes, heat waves, and flooding making that the number one reason to “abnormal” claims.
If you are an insurance company in this region or ready to venture into the market with ground breaking policies and solutions, you as an insurer or the state have to drop plans or raised prices in the many disaster-prone areas in this regard.
The risk of an explosion of damage claims in the state, hence burying companies’ profits, has led to what I call an exodus in the past. If you do not, you join the several private insurers operating in Florida who have cut coverage in some of the areas most vulnerable to natural disasters, or have withdrawn from the state entirely.
Is there a hope for the property insurance market in Florida?
Worthinsurance.com has currently observed encouraging signs of stabilization and improvement. According to the site, after years of rising rates, the latest update from the Florida Office of Insurance Regulation (OIR) reveals a downward trend in rate filings for 2024, with some companies even proposing decreased rate.
So What’s the Big News For Consumers?
There is a good state of assurance in the data release by the Florida Office of Insurance Regulation (OIR) this year. For the first time in years, there’s a downward trend in property insurance rate filings.
Worthinsurance.comus if the view that this shift is a significant indicator of a stabilizing market a d that it is a direct result of the comprehensive reforms enacted in 2022 and 2023, which have bolstered consumer protections, fortified Citizens Property Insurance Corporation, and incentivized investment from insurers and reinsurers.
We all are of the high hopes that these reforms will inject the much-needed stability into the property insurance market, and foster a more competitive landscape and ultimately benefiting you, the consumer.
