Over the past two years, Florida has seen a surge of new insurance carriers entering the market. At a high level, this is a positive development—it signals that insurers view Florida as a viable business environment rather than one solely plagued by insolvency concerns. More carriers mean increased competition, which can lead to better pricing and options for consumers. However, as with any industry shift, it’s important to understand the nuances of these new players before making coverage decisions.
Who Are the New Carriers?
Many of the so-called “new” carriers in Florida are actually sister companies of established insurers. For example:
- Ovation is affiliated with Florida Penn/Edison
- Orange Insurance is tied to Cabrillo Coastal
- Tailrow is linked to TypTap/Homeowners Choice
While these companies operate under different names, they often share claims teams and underwriting staff with their parent organizations. This provides a level of confidence when placing policies with them, as they bring experience and operational stability.
However, for true start-up insurance companies, we take a more cautious approach. It’s essential to research their leadership, financial backing, and ability to withstand Florida’s volatile market. Given that we are only a couple of years removed from a wave of carrier insolvencies, we recognize the value of an insurer with a proven track record.
The Citizens Connection & Learning Curve
In the wake of numerous carrier failures in 2022, many policyholders were forced into Citizens Property Insurance, which was originally designed as the state’s insurer of last resort. Now, as new companies enter the market, many are growing through Citizens depopulation or “takeout” programs, where policies are transferred from Citizens to a private insurer.
If a new carrier’s premium is close to the Citizens rate, policyholders are often required to move, regardless of preference. While this transition can be challenging, it also provides an opportunity for us to assess these carriers before actively placing new business with them. We closely monitor their claims handling, customer service, and underwriting approach to ensure they meet our standards.
What This Means for Consumers
The expansion of insurance carriers in Florida is ultimately a positive step for consumers and the industry. However, not all new carriers are created equal. While we welcome increased competition and additional market capacity, our top priority remains placing clients with insurers that offer both stability and reliability.
As always, we will continue to perform due diligence on the companies we work with, ensuring they are strong, trustworthy partners who can provide long-term security for our clients.
