The State of Florida's Property Insurance Market

Download the January 2013 Report (PDF)

2nd Annual Report

(released January 2013)

This report serves as an update to The State of Florida’s Property Insurance Market 2011 report completed by the Florida Catastrophic Storm Risk Management Center in December, 2011, (available below). First, the report provides a brief history of events, legislative and regulatory activity, and the state of Florida’s involvement in residential property insurance. Second, a thorough analysis of the primary property insurance market in Florida is provided, including information on exposure, pricing, and regulatory factors that have significant effects on insurer performance. Third, the report discusses the data regarding competition, insurance availability, supply-side size and market structure, as well as financial performance of Florida insurers, and provides a comparison to other hazard prone states. Fourth, the reinsurance and other capital markets available to Florida are reviewed. Fifth, the report evaluates the impact of all of these factors by examining the state’s exposure levels and the effect on consumers of the potential post-loss assessments. Finally, the report poses some open questions regarding the economic impact of the market structure that is currently in place in the state

Download the 2011 Report (PDF)

The State of Florida's Property Insurance Market

(released December 2011)

While Florida is ahead of its U.S. peers in learning to manage a financial market for catastrophes, interventions in the state’s property insurance and reinsurance markets have resulted in below-market property insurance prices and cost shifting from one policyholder to another and from current to future policyholders.These are among the findings of a report on Florida’s property insurance market completed for the State Legislature by The Florida Catastrophic Storm Risk Management Center at The Florida State University.

The State of Florida’s Property Insurance Market examined the state of the catastrophe risk finance system in Florida, including the private market for property insurance and its quasi-public property insurance entities – Citizens Property Insurance Corporation (Citizens), the Florida Hurricane Catastrophe Fund (FHCF), and the Florida Insurance Guaranty Association (FIGA). Also, it compares interventions by Florida lawmakers and regulators with those of other coastal states and evaluates their potential future consequences to Florida policyholders and citizens. Recommendations are offered for future policy making.