Florida Approves Two New Property Insurers Amid Market Stabilization

The Florida Office of Insurance Regulation has approved two new property insurers to enter the state's homeowner market, marking an ongoing effort to stabilize and expand Florida's insurance landscape. Incline National Insurance Company, based in Texas, and Florida Insurance and Reinsurance Company, a Florida-based reinsurer, will add capacity particularly in homeowners multi-peril, condominium, and commercial coverage sectors. These companies are the 13th and 14th entrants following legislative reforms in 2022 and 2023 designed to reduce litigation and improve market conditions.

These reforms aim to decrease financial incentives for frivolous lawsuits, thereby encouraging insurer participation by creating a more predictable claims environment. Many new entrants have built initial portfolios through depopulation of the state-run Citizens Property Insurance Corp., though the two newest companies have not yet been listed as participants in these efforts.

Incline National Insurance plans to offer a broad range of policies statewide, including homeowners multi-peril, allied lines, inline marine, workers compensation, and private passenger auto coverage. Florida Insurance and Reinsurance Company will focus on condominium associations and smaller multi-tenant office buildings while providing reinsurance solutions to optimize underwriting capacity and capital efficiency among insurers.

Industry data reflects signs of market stabilization, with Florida-headquartered insurers reporting a $944 million net income in 2024 after previous losses. Additionally, rate filings show a trend toward stable or reduced premiums, with an average increase of just 1% in 2024, the lowest nationwide according to S&P Global. This contrasts with rate hikes seen across other states.

The Office of Insurance Regulation continues to invite new insurer applications, targeting a streamlined review process to approve companies within 60 days of complete submissions. Financial capitalization requirements range from $2.5 million to $5 million, facilitating market entry efforts. This expansion reflects a broader regulatory push to increase competition and improve coverage options in Florida's challenging property insurance market.