Two new insurers join Florida's property market after legislative reforms

Insurance Commissioner Mike Yaworsky has announced the addition of two new property and casualty insurers to Florida's market. Stand Insurance Exchange and Praxis Reciprocal Exchange are the latest companies to join since the state's legislative reforms, bringing the total to 17 new insurers. These reforms have contributed over $574 million in policyholder surplus.

Chief Financial Officer Blaise Ingoglia commented on the development, stating that the entry of new companies enhances competition and can help reduce insurance rates for homeowners. "Florida’s insurance market continues to strengthen," he said.

Commissioner Yaworsky expressed his satisfaction with the ongoing growth, attributing it to legislative changes. "Our state’s insurance market is thriving—with 17 new companies since reforms," he noted.

Stand Insurance Exchange, based in Tallahassee, will offer various types of insurance including fire and homeowners multi-peril. The company aims to use technology and industry expertise to protect homes while reducing premiums. Praxis Reciprocal Exchange, located in Tampa, will provide similar services along with boiler and machinery coverage. Its leadership team brings extensive experience in Florida's insurance sector.

The Citizens Property Insurance Corporation has seen a reduction in policies from over 1.4 million in September 2023 to less than 780,000 now. Both Stand and Praxis plan to assume 25,000 Citizen policies each by December.

Since January 2024, there have been significant rate adjustments among insurers in Florida. Thirty companies have filed for rate decreases while others have requested no change or a minimal increase. Notably, Florida Peninsula has proposed its largest rate decrease ever, aiming for an average reduction of 8.4% on homeowner premiums.

The Florida Office Of Insurance Regulation (OIR) encourages companies interested in entering the market to apply at any time, with reviews typically completed within 60 days. Further details can be found on OIR’s website: OIR Company Admissions.

Information from this article can be found here.