FLOIR announces hearing on proposed rate changes for Homeowners Multi-Peril insurance

The Florida Office of Insurance Regulation has announced a virtual public rate hearing regarding Trusted Resource Underwriters Exchange's proposed statewide average rate changes for Homeowners Multi-Peril insurance.

According to Lisa and Miller Associates, on June 17, 2025, the Florida Office of Insurance Regulation (OIR) held a public, virtual rate hearing for Trusted Resource Underwriters Exchange (TRUE), a reciprocal insurer founded by American Family Insurance in 2020 and operating in Florida and Texas. TRUE sought a statewide average increase of 31.5% for HO-3 Homeowners Multi-Peril policies, affecting 4,646 Florida policyholders, while requesting no change for HO-5 policies. The hearing allowed OIR’s Director of Property and Casualty Financial Oversight, Jane Nelson, and actuary Daniel Zhong to question TRUE’s executive and actuarial team about the necessity and calculation of the proposed rate increase.

Lisa and Miller Associates reported that TRUE executives testified that their actuarial analysis supported an increase of nearly 60%, primarily driven by hurricane losses and rising reinsurance costs. However, they elected to file for a smaller 31.5% increase due to market and competitive considerations. They explained that the methodology for the rate filing segmented losses into hurricane, non-hurricane catastrophe, and non-catastrophe categories, with higher increases applied to hurricane peril (about 50%) and lower increases for non-hurricane peril (around 9%). Representatives indicated that policyholders in coastal areas would experience larger rate hikes and that a significant portion of the increase was attributable to reinsurance costs, which made up 40% of the rate increase.

According to The Florida Channel, TRUE acknowledged during questioning that it did not file annual rate updates in 2023 and 2024 due to changes in management and ownership. This resulted in non-compliance with Florida’s statutory requirement for annual filings. The company said that part of the current 31.5% increase is a "catch-up" to compensate for missed filings and intends future filings to be more timely and segmented. Zhong also confirmed that TRUE had not performed a territorial rate review in this filing but plans to address territorial segmentation in a forthcoming submission.

The Florida Office of Insurance Regulation (OIR) is responsible for all regulatory activities concerning insurers and other risk-bearing entities in the state, including licensing, rates, policy forms, solvency, claims, and market conduct as provided under the Florida Insurance Code. Led by the Insurance Commissioner appointed by the Financial Services Commission, OIR supervises both property & casualty and life & health insurance sectors through oversight, product review, and market regulation units. OIR’s funding is appropriated by the Legislature from the Insurance Regulatory Trust Fund. Its mission includes ensuring insurer compliance, financial stability, and consumer protection across Florida’s insurance marketplace.