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Florida renewal sees orderly process and price increases, driven by recent reforms: JMP Securities

May 22, 2023

The Florida insurance market is poised to experience a marked contrast during its June 1 renewal, characterised by an early and orderly process, according to JMP Securities.

However, the renewal will also bring significant price increases as the market seeks to stabilise and address ongoing challenges, the report noted. Industry experts indicate that a fair description of the renewal overall would be a rate increase ranging between 30% and 40%.

Attempting to secure pricing well below this level may result in a rapid reduction in available capacity. Pricing adjustments are expected to be milder for reputable cedants and lower layers that were already priced highly, whereas higher increases will be observed for lower-quality cedants or more remote upper layers with lower rates.

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