Florida property insurers’ lawsuit costs hit fresh high at $3.5B last year

Hurricane Ian In an aerial view, damaged buildings are seen as Hurricane Ian passed through Fort Myers Beach on September 29, 2022. The hurricane brought high winds, storm surge, and rain to the area, causing severe damage. (OBJ)

By Christina Georgacopoulos and WFTV Staff

ORLANDO, Fla. — Editor’s note: This story is available as a result of a content partnership between WFTV and the Orlando Business Journal.

Florida property insurance carriers nearly broke even last year for the first time since 2016 in a much-needed course correction for the market, despite litigation expenses rising to a new high of $3.46 billion.

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The Florida Office of Insurance Regulation’s latest market stability report shows that insurers collectively had about $100 million in net underwriting losses in 2023. While still in the red, last year’s performance is a major improvement from roughly $1.2 billion in losses in 2022.

Defense and cost containment expenses, or costs associated with defending and managing a claim, increased 17% from $2.96 billion in 2022 to roughly $3 billion in 2021, the report shows.

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Click here to read the full story on the Orlando Business Journal’s website.

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