WEST PALM BEACH, Fla. — After years of not showing any profitability, Florida's insurance industry is having a good year so far.
"According to data from the Florida Department of Insurance Regulation, insurers are showing much more positive results this year than they have in the past," Mark Friedlander of the Insurance Information Institute said.
The better bottom line may be because hurricane season, at this point, has only had Hurricane Idalia in North Florida, which didn’t come close to the damage inflicted a year earlier by Ian in Southwest Florida.
The year is also looking good for reinsurers, such as Berkshire Hathaway, which took a reported risk of $15 billion this year in Florida.
Back in May, the company's vice chairman of insurance admitted they faced big losses if a big hurricane struck Florida.
But all this profitability may not necessarily mean better days for policyholders.
"Insurers need to price for expected risk, and they don't price it on just one season," Friedlander said.
Forecasting a damaging hurricane season is not a perfect science, and Florida's weather history continues to play a major role in setting rates.
That is why industry experts are still watching to see if legislative reforms in Florida will lessen fraudulent litigation for insurers.
"I don't feel premiums will go down anytime soon," Richard Estrella of Estrella Insurance, a multi-state agency based in Florida, said. "But maybe we reach a level that we reached, and we can all maybe start finding ways to start lowering premiums back and get competitive again."