AM Best, a global credit rating agency and data analytics provider, has announced it will host a market briefing on Florida’s property insurance market ahead of the 2025 hurricane season. The session will include discussions on Citizens’ Depopulation Program.
According to AM Best, the upcoming briefing will address key challenges in Florida’s property insurance sector, including profitability pressures, rate dynamics, and the Citizens Depopulation Program. These topics are highly relevant to reciprocal insurers operating in the state. These member-based entities are navigating the same regulatory and environmental headwinds as traditional carriers. As competition intensifies, reciprocals are expected to play a more active role in market stabilization.
As per the Florida Office of Insurance Regulation, Florida’s legislative reforms have attracted 12 new property insurers since implementation, with over $418 million in added surplus developments that also open the door for the expansion of reciprocal insurance models. The reforms have helped create an environment where alternative insurance structures, including reciprocals, can enter or grow in the Florida market. This policyholder-owned format may benefit from a more predictable regulatory climate and improved capital flows.
According to the Florida Office of Insurance Regulation, recent tort and consumer protection reforms in Florida have reduced legal costs that previously burdened both traditional and reciprocal insurers. These changes include the elimination of one-way attorney fees and limitations on assignment of benefits, both of which had disproportionately affected insurers’ financial performance. Reciprocal insurers stand to benefit significantly from the lowered litigation environment.
John Weber is President and CEO of Spinnaker Insurance Company, a fronting carrier that often partners with reciprocal insurers and insurtech Managing General Agents (MGAs) to deliver flexible property insurance solutions. With a background in executive roles at BlueCod Technologies and USAA, Weber brings expertise in strategic insurance operations and carrier-platform partnerships. His leadership at Spinnaker positions the company as a key player in supporting reciprocal exchanges operating in challenging markets like Florida.
