WEST PALM BEACH, Fla. — At a time when it seems homeowners insurance in Florida is hitting new highs, American Integrity Insurance based in Tampa is seeing a rate decrease of 6.9%.
According to a news release, the company said the rate reduction will affect 55,000 policies.
The company's CEO credited reforms from Florida lawmakers on curbing widespread litigation in the insurance industry.
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"Historic legislative reforms have begun to dismantle the costly 'tort tax' that consumers have shouldered for years," American Integrity Insurance President and CEO Bob Ritchie said.
Nearly a dozen insurers this year have asked for rate decreases and at least another 10 are not seeking rate hikes.
Florida officials have been looking at the reforms as a way to bring stability to Florida insurance.
What's causing the lower rates?
Mark Friedlander with the Insurance Information Institute said rates are reducing with some companies thanks to Florida legislation in late 2022 and early 2023, which addressed the legal system abuse and fraud plaguing an already crumbling system.
"The legislative changes that addressed legal system abuse and assignment of benefits fraud have cut down dramatically the volume of lawsuits being filed against Florida insurers," Friedlander said. "We had seen on average approximately 80% of all U.S. property claim lawsuits were filed in Florida."
To put that in perspective, Florida averages 8-9% of nationwide claims and 80% of its lawsuits, putting a lot of strain on insurers.
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Thanks to that legislation, companies are already seeing those benefits.
"Based on data we have reviewed from the Florida regulator, the insurance industry posted an underwriting profit for the first quarter of this year," Friedlander said. "We've had nearly 10 consecutive years of underwriting losses, most of that driven by the man-made risk crisis."
Friedlander said with American Integrity joining the rate reduction fray, it could mean more large companies following suit. It's a breath of fresh air for many homeowners around the state.
"[This] will lead to more competitive pricing for consumers," Friedlander said.
Friedlander said depending on the severity of the hurricane season we could still see increases next year, but right now he said it's a very encouraging sign for Florida homeowners.