Property insurance market: Relief on the way?

Reinsurers are increasing their appetite for the Florida market, according to a recent story in The Insurer.

One insurance CEO, Security First chairman and CEO Locke Burt, stated “The legislative changes were transformational and we had a number of reinsurers who recognized that.”

The property insurance picture in Florida has been ugly so this bit of positive news is well received. Reinsurance is the insurance that insurance carriers like Universal Property or Citizens take out to insure against their risks. It’s insurance for insurance companies in essence.

Reinsurers appear to be gaining more confidence in the Florida market after the recent rate hikes and, crucially, the legislative reforms introduced in HB 837 tort reform bill. In turn, this is giving insurance carriers more appetite for entering and/or expanding in the Florida market.

Don’t expect this to reverse rate increases anytime soon; at best, it may slow the rate of increases in future years. And much is dependent on how hurricane season shapes up in Florida.

But in this challenging insurance market, positive news is welcome.