Concerns over sustainable underwriting profits has seen three domestic property insurers in Florida file for a state-wide average rate change, highlighting that the market for homeowners and commercial property insurance is still under pressure in the state.
The carriers believe that significant additional rate is required to make it an economic underwriting market, notably for catastrophe exposed property business.
Southern Fidelity, Cypress Property & Casualty Insurance Company, and Centauri Specialty Insurance have each filed for rate changes with the Florida Office of Insurance Regulation, with virtual hearings set to take place today.
Southern Fidelity has filed for an increase of 84.5% for its Homeowners Multi-Peril business. The effective date for this line is December 1st, 2021, for new and renewal business.
The company has also proposed a 111.1% increase for its Property / Personal business (dwelling fire). The effective date for this line of business is January 1st, 2022, for new and renewal business.
At the same time, Cypress has filed for a +26.3% increase for its business in the ‘Florida Evergreen” Homeowners Multi-Peril program. The effective date for this filing is December 22nd, 2021, for both new and renewal business.
Finally, Centauri Specialty has requested a state-wide average rate increase of +28.3% for its Property / Personal (dwelling fire) business. The effective date for this is April 15th, 2022, for new and renewal business.
Due to the persisting rise of primary insurance rates in the state of Florida for catastrophe exposed property business, it is likely that the pressure on reinsurance rates will also continue.
As primary insurers gain increasing rate, reinsurers will want to ensure they are also reflecting the marketplace in their own pricing as well.
It’s been a challenging time for property insurers in Florida, and as the assignment of benefits (AOB) issue continues and players navigate litigation, loss amplification and claims inflation, the desire for higher pricing has intensified.
