Florida adds 20 carriers, $850M

Florida regulators approved three more property insurers on May 20, taking the number of new entrants since 2022 to 20 as state officials press the case that capital is returning to a market battered by storms, litigation costs and insurer failures. Insurance Commissioner Mike Yaworsky said the latest approvals bring more than $850 million in capital into Florida since the legislative overhaul began, according to the Florida Office of Insurance Regulation. The new companies are Builder Reciprocal Insurance Exchange, Frontline Insurance Reciprocal Exchange and Wingsail Insurance Company. Their arrival comes as many homeowners are still paying sharply higher premiums and some high-value properties face new limits on state-backed coverage. ### Which insurers were just approved, and what are they expected to write? Builder Reciprocal Insurance Exchange, based in Texas, was approved to write homeowners multi-peril coverage in Florida and will focus on new or newer home communities, the Office of Insurance Regulation said. The office said the company will bring more than $100 million in capital to the state. Frontline Insurance Reciprocal Exchange and Wingsail Insurance Company were also approved as part of the latest batch announced by Yaworsky. (floir.gov) Mike Yaworsky said in the state announcement that “the competition is thriving,” and urged consumers to shop around among the newer carriers. The approvals extend a run of new entrants that state officials have tied to reforms passed after the 2022 market crisis and additional changes in 2023. (floir.gov) ### If capital is coming back, why are homeowners still under pressure? Florida homeowners’ insurance premiums rose 75% from 2021 to 2025, nearly double the 38% national increase, according to a report cited by Beinsure from the Coalition for an Insurable Future. The report attributed the increase to weather risk and reinsurance costs. (floir.gov) Tampa Bay Business Journal also reported that Florida is leading the country in homeowners’ insurance costs and that affordability remains a central problem even as new carriers enter. That leaves regulators with two stories moving at once: more insurer capacity on one side, and premium strain on policyholders on the other. (beinsure.com) ### What changed for expensive homes? A new $15 million coverage cap is reshaping options for high-end homeowners who had relied on Citizens Property Insurance, according to InsuranceNewsNet’s report on the change. The cap is pushing owners of higher-value homes to reconsider how they structure coverage, including whether they need to rely more heavily on private-market insurers or layered protection. (bizjournals.com) Citizens has long been used as an insurer of last resort in Florida, and lawmakers have repeatedly tried to reduce its footprint by steering policies back into the private market. The new cap adds pressure in the upper end of the market at the same time regulators are highlighting new private entrants. (insurancenewsnet.com) ### How important is the Cat Fund heading into storm season? The Florida Hurricane Catastrophe Fund is in a “strong position” ahead of the 2026 hurricane season, E&E News reported on May 22. The state-created fund provides backup reinsurance for private insurers and is viewed as a lower-cost source of protection than much of the private reinsurance market. (insurancenewsnet.com) June 1 marks the start of the Atlantic hurricane season. The Cat Fund’s position matters because its claims-paying capacity affects insurers’ costs and their ability to keep writing policies in Florida after a major storm. ### What should readers watch next? June 1 is the next clear milestone, when the Atlantic hurricane season begins and the market’s new capacity faces its first near-term test. (eenews.net) The Florida Office of Insurance Regulation, Citizens Property Insurance and the Florida Hurricane Catastrophe Fund are the main institutions to watch as carriers file rates, assume policies and respond to any early-season storms. (floir.gov)