The Florida Insurance Market’s Wild Ride
If you think navigating Florida’s highways during hurricane season is risky, try navigating its insurance market. The combination of climate change, market turmoil, and rising risk exposure has turned the state's property insurance landscape into a high-stakes game of financial survival. But where some see crisis, others see opportunity—enter the surge of Excess & Surplus (E&S) carriers, the financial daredevils of the insurance world.
What’s Happening in Florida’s Insurance Market?
Florida’s property insurance sector has been through the wringer. With rising climate risks and market volatility, many traditional insurers are pulling back. Who is stepping in? E&S carriers, aka non-admitted insurers—companies willing to take on high-risk policies that standard insurers shy away from. These firms are not here for the faint of heart; they specialize in covering luxury homes, commercial real estate, and unique risk scenarios that make traditional insurers sweat.
With over 25 new E&S carriers authorized in Florida since 2022, and a 39% year-over-year increase in commercial property E&S policies, the market is shifting. Even some traditional insurers are launching their own E&S divisions to keep up.
Why Should Business Leaders Care?
If you own property, run a business, or are even remotely interested in financial markets, this trend is worth watching. E&S insurers are not just a niche alternative anymore—they are becoming a mainstream solution for businesses and homeowners facing rising costs and shrinking coverage options.
Key takeaways for business owners and property investors:
1. More Options:The rise of E&S means new, flexible insurance products are emerging.
2. Higher Costs:Expect premiums to be steeper, but often, this is the price of security in high-risk markets.
3. Long-Term Shift: E&S carriers might not just be a temporary fix—they could redefine the industry’s future.
Florida: A Canary in the Climate Coal Mine?
Florida’s insurance challenges could be a preview of what is to come nationwide. Rising climate risks are reshaping how insurers assess risk and price policies. As more businesses and homeowners face uncertainty, E&S solutions could expand beyond the Sunshine State.
Final Takeaway: Adaptation is the Name of the Game
Like any evolving market, the insurance industry is finding ways to adapt. Whether you are a business leader, investor, or homeowner, understanding these shifts can help you stay ahead of the curve—before the next hurricane season arrives.
This post goes out to our Sarasota partners: Ginger Mentzer, CPA, MBA, Anna Reyes Agnew, MBA, CTP, Deane Baron, Tim Fischer, Ernest J. Scheidemann, CPA
Reference
Christina Georgacopoulos, (2025, February 6). Market crisis, climate risks spark surge in Florida specialty insurance market. Tampa Bay Business Journal. https://www.bizjournals.com/tampabay/news/2025/02/06/specialty-insurance-market-surge-florida.html
To read more of Christina's work, visit her page at Christina Georgacopoulos.
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