Florida's New Property Insurance Stability Unit

Governor DeSantis signed SB 2D into law that contains increases to the regulation of insurance companies and requires greater transparency of insurers in the state of Florida. With the rash of 2021 and 2022 insurance company insolvencies in the state, and the meltdown of the property insurance market that has left many other insurers in perilous condition, additional measures have been put in place to identify troubled companies, and provide transparency about the causes of insolvencies.

Many of these insolvencies have been domestic companies writing only in Florida or small regional carriers. By giving the department additional tools along with the other property insurance reforms contained in SB 2D and SB 4D which the governor signed into law, the property insurance market in time will start to see some stabilization and relief from the excessive litigation and AOB claims that have brought many Florida insurers to the brink. However these reforms may not be enough to save those already in trouble. The ratings firm Demotech has indicated that up to an additional 25 insurers in the state are facing severe financial crises, especially if they cannot secure adequate reinsurance by July 1, 2022. The result may be further insolvencies.