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Insurance industry

Clock Ticking for Property Insurance Changes in Florida

Strategic Insights

— 2 min read

The Florida Senate has approved a measure to transform the state's insurance market, including reforms to Citizens Property Insurance Corp. and the Florida Hurricane Catastrophe Fund. The reforms aim to increase private insurers' participation in the market and reduce the risk for state-backed companies. The bill now heads to the House for consideration. Critics argue that the state-backed company, Citizens, has artificially kept premiums low and should be transitioned to cover its costs. The Senate measure would limit premium increases to 20% per policyholder, compared to 5% in the House version.

Key Takeaways:

  • The Senate has approved a measure to reform the state's insurance market, including Citizens Property Insurance Corp. and the Florida Hurricane Catastrophe Fund.
  • The reforms aim to increase private insurers' participation in the market and reduce the risk for state-backed companies.
  • Critics argue that Citizens has artificially kept premiums low and should be transitioned to cover its costs.
  • The Senate measure would limit premium increases to 20% per policyholder, compared to 5% in the House version.
  • The upper chamber would also make it harder for private insurers to raise rates as they try to replace some of the coverage they will lose when the CAT fund sheds some of its coverage under the plan.
  • Senate President Pro Tem Mike Fasano has expressed opposition to the plan, stating that it would be "wrong" to implement such a measure.
  • The conference committees have begun negotiations, but the budget is not expected to be completed by the end of the week, delaying other measures.
  • The tax measure that would allow a half-cent sales tax in Duval County for low-income patient care has been approved by the Senate.

Statistics:

  • The Senate measure would limit premium increases to 20% per policyholder.
  • The House version would limit premium increases to 5% per policyholder.
  • The CAT fund provides coverage to private insurers, which will have to cover claims if a storm hits.
  • The bill aims to increase private insurers' participation in the market, reducing the risk for state-backed companies like Citizens.
  • The Senate measure was approved with a vote of 38-0.
  • The tax measure will require a referendum or super-majority vote in the Jacksonville City Council to take effect.

Sources:

  • The Florida Times-Union, Jacksonville: "Clock ticking for property insurance changes championed by lawmakers"
  • brandon.larrabee@jacksonville.com, (678) 977-3709: Phone number and email address of the author, Brandon Larrabee.
  • McClatchy-Tribune Information Services: Distributed article.
  • The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA: Contact information for reprints.

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