Insurance Expert of Bankrate: 'Past reforms helped stabilized the market and attract insurers to Florida'

Shannon Martin, an insurance expert at Bankrate, has highlighted the challenges facing Florida homeowners due to stalled legislation. According to Martin, these residents are left without new insurance reforms or a hurricane tax holiday. This observation was shared on LinkedIn.

"Many industry experts say past reforms have helped stabilize the market and attract more insurers to Florida," said Martin, according to LinkedIn. "Insight from Mark Friedlander, Spencer Roach and Jonathan Wilson help round out the many perspectives of the Florida insurance market. The House and the Senate announced they reached an agreement and plan to pass the 2025-2026 fiscal year budget on June 16, 2025."

According to the Florida Senate, reciprocal insurance exchanges, a form of risk-sharing cooperative where policyholders insure one another, have gained attention as a potential alternative in high-risk states like Florida. These entities are governed by an attorney-in-fact and often operate with lower administrative costs than traditional insurers, making them attractive during times of market instability. Florida statutes recognize reciprocal insurers under Chapter 629, which allows them to transact business in the state, offering a structural option for communities seeking self-reliant insurance models in the face of escalating premiums and insurer withdrawals.

According to the Florida Office of Insurance Regulation (OIR), the average annual premium for homeowners insurance in Florida was $3,731 as of the most recent market data. This figure reflects the significant challenges faced by Florida’s insurance market, including hurricane risk, reinsurance costs, and claims litigation, which all contribute to elevated premiums compared to national averages. The OIR continues to monitor these trends as policymakers and insurers seek solutions to improve stability and affordability for Florida residents.

Since 2020, more than 30 property insurers have exited or ceased issuing new policies in Florida, increasing pressure on Citizens Property Insurance Corporation (Citizens), the state’s "insurer of last resort." As of mid-2024, Citizens held over 1.2 million policies—far exceeding typical private-carrier levels—indicating significant market stress. In this context, reciprocal insurance exchanges have gained appeal due to their lower administrative overhead and ability to tailor coverage to high-risk communities.

Martin is an experienced insurance expert and writer at Bankrate who covers complex topics such as home, auto, and property insurance with a data-driven approach. With over ten years of experience in the industry—including roles at GEICO, Jerry, and The Hartford—she combines technical expertise with consumer advocacy to help demystify policy decisions for everyday readers. Based in Buffalo, NY, Martin holds a B.S. from the University of Louisiana at Lafayette and is also a licensed insurance agent contributing regularly to national insurance discussions.