The Florida Office of Insurance Regulation has announced that the state's personal property insurance market reported an underwriting profit and a significant increase in operating income for 2024, according to a report by the AM Best rating and analytics firm. The announcement was made on X.
According to Bankrate, Florida's personal property insurance market has faced considerable challenges over the past decade. These include frequent natural disasters and a litigious environment, which have led to financial instability among insurers. In 2022, Florida accounted for approximately 9% of the nation's homeowners' insurance claims but nearly 79% of its homeowner-related lawsuits. Recent legislative reforms aimed at curbing lawsuit abuses and stabilizing the market have been instrumental in improving the industry's financial health.
As reported by AM Best, active Florida property insurers in 2024 reported an underwriting gain of $206.7 million, marking a significant turnaround from the $174.4 million loss recorded in 2023. This improvement reflects enhanced underwriting practices and the positive impact of regulatory changes. Pre-tax operating income also surged to $492.3 million, compared to a near-breakeven result in 2023.
According to Insurance Journal, the combined ratio for Florida property insurers improved to 93.1% in 2024, down from nearly 100% the previous year, indicating better profitability. This improvement suggests that insurers are collecting more in premiums than they are paying out in claims and expenses. The positive financial performance is attributed to recent legislative reforms and a reduction in hurricane losses during the 2023 storm season.
Michael Yaworsky, Commissioner of the Florida Office of Insurance Regulation, has held multiple regulatory roles influencing both traditional and alternative insurance structures such as reciprocals. His background includes leadership in insurance oversight, law, and gaming regulation with a focus on market stability and consumer protection. Yaworsky’s legal and administrative experience informs policy frameworks that affect reciprocal insurers’ compliance and operational standards.