May 23, 2024, WPTV-TV, West Palm Beach – “We’re all holding our breath if that’s a strategy,” said Lisa Miller, a former Florida Deputy Insurance Commissioner and current advisor to insurance companies. “It will have an effect if some of these predictions materialize, it could reverse some of the strides we’re making with leveling off of rate increases,” Miller said. (Original story location, including video version: https://www.wptv.com/money/real-estate-news/hurricane-season-stands-to-disrupt-floridas-insurance-industry)
WEST PALM BEACH, Fla. – The new predictions of this upcoming hurricane season stand to disrupt Florida’s insurance industry, if the projections become true.
“We’re all holding our breath if that’s a strategy,” said Lisa Miller, a former Florida Deputy Insurance Commissioner and current advisor to insurance companies.
“It will have an effect if some of these predictions materialize, it could reverse some of the strides we’re making with leveling off of rate increases,” Miller said.
The strides lately have been with 19 insurance companies in the state seeking rate reductions or no rate increases.
It’s a sign, state leaders said of a stabilization of the state’s volatile rates, which have soared to the highest in the country.
“Just the average Florida homeowner is paying $4,000 more per year than everyone else in America,” Bankrate analyst Shannon Martin said. “It is expensive to price this risk and extreme weather isn’t going away. All signs indicate it’s just going to get worse.”
Long term predictions of the weather are a big part of what the research insurance and reinsurance companies do to set rates.
No one knows exactly where a hurricane will make landfall this year, but if a heavily populated area is impacted, experts said it could lead to higher rates into next year.
“I think the weather patterns we’re seeing is the new normal,” Miller said. “I think we as Floridians have to brace for that, prepare for that.”
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