Florida regulators approve Apex Star Reciprocal Exchange to offer property, liability coverage

The Florida Office of Insurance Regulation has announced the approval of Apex Star Reciprocal Exchange to offer various types of insurance, including fire, homeowners, commercial, marine, and liability insurance. This decision follows a consent order that requires surplus and premium contributions.

According to Insurance Journal, Apex Star Reciprocal Exchange was approved in November 2024 as the 12th new property-casualty insurer to enter the Florida market since legislative reforms were enacted in 2022 and 2023. These reforms aim to reduce excessive litigation and stabilize insurer participation. The Florida Office of Insurance Regulation emphasized that this approval indicates progress in restoring carrier confidence after significant market withdrawals due to catastrophe losses. This move is part of broader regulatory efforts to strengthen insurer engagement and expand consumer options in a high-risk property insurance environment.

As reported by the Insurance Journal, the consent order authorizing Apex Star’s operations mandates policyholders to pay their standard insurance premium plus a surplus contribution equal to 10 percent of the annual premium. Additionally, the exchange must maintain a statutory surplus threshold, which includes a $400,000 deposit held with the Florida Bureau of Collateral Management. These financial conditions are intended to enhance the insurer’s capital foundation and support solvency as it begins operations in Florida.

Since the implementation of reforms in 2022–2023, Florida has welcomed twelve new property-casualty insurers, collectively adding approximately $418 million in policyholder surplus to the market. This influx averages nearly $34.8 million in surplus per insurer and contributes to improved underwriting capacity and market resilience. Industry observers caution that while this capital infusion is significant, it may still be insufficient to cover substantial catastrophe losses given Florida’s vulnerability to hurricanes and natural disasters.

Apex Star is part of Star Insurance Holdings, which provides property-casualty coverage tailored for coastal states and high-risk markets through a reciprocal exchange model supported by a managing general agent. The group focuses on transparent pricing, digital tools, and reinsurance-backed security to address challenges specific to homeowners in catastrophe-exposed regions. According to their website, Star Insurance operates with a structure where subscribers are policyholders with shared risk participation, emphasizing long-term financial resilience and customer service.