New Insurance Entrants in Florida Amid Rising Costs and Hurricane Preparedness

As Florida gears up for the upcoming hurricane season, the insurance market in the state is witnessing significant shifts. Recently, Florida has welcomed twelve new insurance companies since 2021, spurred by legislative reforms aimed at reducing insurance costs and revitalizing the market.

This influx, including the latest addition, Apex Star Reciprocal Exchange, reflects optimism among state leaders and industry agents about competitive pricing and accessibility. However, the reality for many Floridians like Carol McCarthy of North Fort Myers tells a different story.

Despite the increasing number of insurance providers, many residents are struggling with rising insurance rates, prompting some to forego coverage altogether, or move away from high-risk areas. Local agents highlight that while new companies are absorbing policies from the state-run Citizens, the insurer of last resort, premiums for transferred policies often surge by at least 20%.

This trend underscores the complex dynamics of the insurance market in regions vulnerable to natural disasters. Although there's a reported stabilization in rates with occasional decreases, the significant drops in premium costs that would substantially alleviate the financial burden on homeowners are yet to materialize.