Florida Property Insurance Market Strengthens with New Carrier Entries in 2023

Florida's property insurance market is showing signs of recovery and increased competition, with two new insurers entering the market this summer, bringing the total new entrants since early 2023 to 14. This influx of new carriers surpasses the number of property insurer insolvencies that occurred during the 2020 to 2023 crisis period, indicating a shifting market dynamic. Insurance Commissioner Michael Yaworsky highlighted that legislative efforts aimed at reducing claims litigation have positively impacted the market, with over 120 residential rate filing requests for decreases or zero increases observed so far in the year.

Incline National Insurance, based in Austin, Texas, received its Florida certificate of authority in April. The insurer, part of the Incline Insurance Group, holds an "A- (Excellent)" financial strength rating from AM Best and plans to offer a diversified portfolio including homeowners multiperil, allied lines, inland marine, workers' compensation, and private passenger auto insurance. The company's expansion into Florida marks a strategic growth move backed by its strong financial standing and multi-state presence.

Another entrant, Florida Insurance and Reinsurance (Florida Re), a unit of the London-based MNK Group, secured its certificate of authority in late June. Florida Re is focusing on condominium and condo association coverage—a market segment that experienced higher rates and reduced coverage following the 2021 Champlain Towers South condo collapse. Additionally, Florida Re plans to provide coverage for smaller multi-tenant office buildings and offer reinsurance products, indicating a targeted approach to underserved or high-risk niches within Florida's property insurance landscape.

The arrival of new insurers corresponds with legislative reforms aimed at curbing legal system abuse, a factor cited by industry representatives as key to restoring insurer confidence. Adam Shores, senior vice president of state government relations at the American Property Casualty Insurance Association (APCIA), emphasized that increasing market entry reflects these regulatory improvements. Overall, these developments suggest a more competitive and stable market environment poised to address Florida's property insurance challenges more effectively.