June 13, 2024
Florida Homeowners Insurance:
Admitted Market Remains Dominant
The Florida Surplus Lines Service Office (FSLSO) recently analyzed market share trends in Florida's homeowners insurance market. The study examined the performance of admitted insurers, non-admitted insurers, and Citizens Property Insurance Corporation (Citizens).
While there has been interest in the potential growth of the non-admitted market, FSLSO's data revealed a decrease in homeowners policy counts for the non-admitted market, as well as overall increases in homeowners premium across all three sectors. Notably, surplus lines insurance continues to represent the smallest portion of the homeowners insurance market in Florida.
While policy count data was only available for the surplus lines sector, homeowners policy counts have steadily declined from 283,700 policies in 2019 to 205,900 in 2023.
Data from FSLSO and S&P Global for the past five years indicate that the admitted market has experienced consistent growth relative to homeowners premium. Premium climbed from $9.14 billion in 2018 to $14.07 billion in 2023, with a 15.45% increase just between 2022 and 2023.
Citizens, a vital player in Florida's market, holds a significant share of Florida’s homeowners market compared to the non-admitted sector. In 2018, Citizens premiums reached $490 million, only slightly less than the non-admitted market that year.
Since then, Citizens premiums have surged to $3.21 billion, dwarfing the non-admitted market in size by a 3:1 ratio. This growth has been dramatic, with year-over-year increases reaching 44.14% in 2020 and peaking at 79.03% in 2022. The 2023 figures show a slower growth rate, at 42.15%, likely due to Citizens depopulation efforts, aiming to reduce the number of insured properties.
The non-admitted market, catering to more specialized needs, has also seen stable growth in homeowners premiums during the same period, rising from $652 million in 2018 to $1.01 billion in 2023. Notably, the growth in non-admitted premiums has slowed down compared to previous years, with only an 8.48% increase in 2023 compared to 2022.
For a more detailed year-by-year breakdown of Florida's homeowners insurance market, please refer to the data extrapolated from FSLSO's Market Data Reports.
DISCLAIMER: This report is based on information extrapolated from publicly available market data reports from the Florida Surplus Lines Service Office (FSLSO) and S&P Global. It is intended for informational purposes only and does not represent an opinion on current or future market conditions.
ABOUT FSLSO: The Florida Surplus Lines Service Office is a not-for-profit entity created by statute and regulated by the Florida Department of Financial Services and the Florida Office of Insurance Regulation. It is overseen by a nine-member Board of Governors and responsible for one of the largest surplus lines markets in the U.S., as measured by the billions in premium written annually by the industry in Florida.
If you have any questions, please contact FSLSO at 800-562-4496 or send an email to info@fslso.com.
