Industry Insight: OIR Approves Four HO Rate Cuts as Citizens Keeps Shrinking

Background: A Market in Transition

Florida Insurance Commissioner Michael Yaworsky announced that the Office of Insurance Regulation (OIR) has approved four homeowner rate decreases, averaging 7% and affecting 62,000 policies at renewal. Yaworsky said more are coming. According to Insurance Journal, he stated: "I expect to see more aggressive rate cuts in the near future and going into 2027." He said OIR is receiving a flood of rate decrease requests, ranging from 0.3% to 19.7%, and will expedite reviews so policyholders feel the change in their pockets.

The Approved Decreases

• One Alliance North America (formerly Universal North America Insurance): 10.4% average decrease for 17,148 policies
• Safe Harbor Insurance: 4.1% average decrease affecting 10,501 policies
• Unique Insurance: 3.2% average decrease for 8,266 policies
• Vyrd Insurance: 10.4% decrease for 26,751 policies

Kin Insurance also recently announced planned rate decreases of as much as 20% for policyholders in three south Florida counties, the commissioner noted. Separately, Dairyland, an auto insurer owned by Sentry Insurance, announced it will begin sending an estimated $30 million in dividend payments to Florida auto policyholders, following an average 14% decrease in its Florida auto rates. The company attributed this to legislative reforms and new stability in the Florida market. It did not disclose how many policyholders are affected.

The Broader Numbers

Yaworsky said the current 30-day average requested homeowner rate decrease is 4.8%. That compares with a 5.2% average increase in 2021 and an average approved rate increase of 15% in July 2022.

Citizens Continues to Shrink

At the Citizens Property Insurance Board of Governors meeting on Wednesday, officials echoed the good news. Citizens' policy count has fallen from a high of 1.4 million in 2023, near the peak of the insurance crisis, to 266,231 in August of this year, as primary carriers have taken on more coverage and takeout offers continue.

• Total insured value dropped from $553 billion in 2023 to an expected $85 billion this year, according to Citizens' data.
• Full-time employees fell from 1,390 three years ago to 882, the lowest level in 15 years.

Board Chairman Carlos Beruff said legislation passed in 2022 and 2023 effectively reduced excessive and "frivolous" claims litigation market-wide. He pointed to the statutory changes that ended one-way attorney fees and assignment-of-benefits agreements. Citizens CEO Tim Cerio said he expects further rate decreases in coming months, and he and board member Erin Knight urged agents and policyholders to shop around for better premiums.

Impact on Public Adjusters and Claims Professionals

Lower rates and a shrinking Citizens book change the environment in which claims are handled. The reporting attributes the improvement to litigation reform, but lower premiums do not by themselves change the terms of coverage or how carriers adjust claims.

• More clients on private carriers. As policies move out of Citizens, adjusters will encounter a wider range of carrier forms, endorsements and claim practices.
• Policy terms still control. Clients who switch for a lower premium may also change deductibles, roof-surface limitations or other conditions. Reviewing the policy at the start of a claim remains essential.
• Fewer litigation levers. With one-way attorney fees and assignments of benefits eliminated, pre-suit documentation and the claims process matter more than ever.

Practical Takeaways

• Advise clients to compare coverage terms, not just price, when shopping for a lower renewal premium.
• Confirm the carrier's identity, including any name changes such as Universal North America becoming One Alliance North America, when preparing notices and correspondence.
• Build the claim file early, with photos, scope, estimates and written communications, since the pre-suit record carries greater weight in the current framework.
• Monitor OIR announcements, as further rate filings and approvals are expected.

How Louis Law Group Can Help

A more stable market does not eliminate underpaid or denied claims. Louis Law Group represents Florida policyholders in disputes with their property insurers and works with public adjusters to protect claim value. If your client's carrier has denied, delayed or underpaid a claim, call us at (833) 657-4812 for a review of the policy and claim file.

Source: Insurance Journal - Florida OIR Approves Four More HO Rate Cuts as Citizens Keeps Shrinking