Florida Insurance Regulators Review Proposed Rate Hike

The Florida Office of Insurance Regulation is reviewing a proposed rate increase of 14% for Citizens Property Insurance, the state's largest property insurer. Citizens' board has already approved the increase, claiming it is essential to maintain its status as an 'insurer of last resort' and to align its rates with the private market, where rates have surged by 103% since 2019. CEO Tim Cerio emphasized that despite the potential hike, Citizens' rates remain lower than those of private insurers, and the increase is necessary to avoid assessments on non-Citizens policyholders in case of disasters. The decision follows legislative reforms aimed at reducing excessive litigation, which has hindered the Florida insurance market. Public comments on the proposed rate hike will be accepted until August 15, with final approval still pending from the Office of Insurance Regulation. If approved, this rate increase could result in hundreds of dollars more in premiums for policyholders across the state.