How Many Insurance Companies Have Left Florida?
The state of Florida is facing an extraordinary situation right now when it comes to the availability of insurance companies. Several companies have left the state in the past few years due to rising losses. Despite hiking insurance premiums, insurers have suffered a more than $1 billion underwriting loss in 2020 and 2021. This has made it difficult for them to stay profitable in Florida. Consequently, many insurance companies have concluded that it is more beneficial to them to depart. This has resulted in fewer choices for consumers when looking for an insurer, and it has raised questions about the stability and security of the state\’s insurance market.
The Companies That Have Left Florida
Several major national insurance companies have left the state of Florida, including Allstate, Progressive, and others. In addition, many smaller local companies have also pulled out due to increased regulations and higher losses. This has resulted in fewer choices for consumers and can make it challenging to find the right coverage at an affordable price.
Reasons For Departure
There are several main reasons why insurance companies have left the state of Florida. The insurance industry faced a staggering underwriting loss of over one billion dollars in 2020, and that trend has continued into 2021, too. Even though premiums have increased substantially, the sector still sees a substantial financial loss in Florida. And that has been a major reason, so many companies are deciding to leave.
The reasons behind the home insurance crisis in Florida are complicated, but several key factors have a big impact.
Another reason is the impact of soaring litigation costs. The Insurance Information Institute (III) published a brief on the Florida insurance crisis in August. A 2017 State Supreme Court ruling allows plaintiffs\’ attorneys to receive up to 2-2.5 times their normal billing rate if the policyholder\’s case is proven in court. This has led to a sharp increase in property policy-related lawsuits in Florida, with more than 130,000 expected for this year alone.
According to III, an immense 79% of insurance lawsuits occur in Florida, with the remaining 21% occurring elsewhere in the United States.
Finally, Florida has seen a surge in natural disasters in recent years, which has impacted the premiums of many insurance providers, resulting in them leaving the state.
What Does This Mean?
At this time, it is unclear how many insurance companies have left Florida in total. However, it is clear that the state has lost a significant number of insurers and that this could cause some issues for consumers in the future. Without more options and consumer protection, the insurance market in Florida will likely remain volatile and expensive.
Conclusion
The departure of many insurance companies from Florida has left consumers with fewer choices and higher prices. As the state continues to struggle with rising costs and fewer consumer protections, consumers need to stay informed about the insurance market and consider other options to ensure they get the security and stability they need in the insurance market.