TAMPA, Fla. — At the start of the 2024 legislative session, state leaders touted six new private insurance companies have entered the state's insurance market as a sign things are slowly turning around, but homeowners say their rates are still rising. They reached out to ABC Action News wanting a list of the six new companies and what coverage they can provide.
According to the Insurance Information Institute, the six new companies are Tailrow Insurance Company, Mainsail Insurance Company, Orion 180 Insurance Company, Orion 180 Select Insurance Company, Orange Insurance Exchange, and Condo Owners Reciprocal Insurance.
"We are told the companies will start writing new policies in the first quarter of the year," said Mark Friedlander, spokesperson for the Information Insurance Institute. "That will be providing insurance products for consumers and giving consumers choices, something we haven't seen in many years."
The question is: Are these new companies writing policies?
TAILROW INSURANCE COMPANY
According to the Insurance Information Institute, Friedlander said Tailrow Insurance is a new company under the Tampa-based HCI group. One of the first companies approved to operate last year and one set to begin writing policies in the first quarter of 2024, Friedlander said.
"It's a brand new company, has very strong financial backing by their parent group HCI," he added.
MAINSAIL INSURANCE COMPANY
The state approved Mainsail to operate in Florida back in August of 2023. The Texas-based company was the second new company to come in last year. According to Friedlander, Mainsail is part of a larger group of insurers across the US and will offer different types of insurance, not just home insurance but auto and commercial insurance as well.
"Because it offers multiple products, it will provide opportunities for bundling," Friedlander said. "So try to take advantage of a bundled opportunity with Mainsail."
ORION 180 AND ORION 180 SELECT
Orion 180 Insurance Company and Orion 180 Select were the third and fourth insurance companies that OIR approved last year. Orion 180 is domiciled in Indiana but headquartered in Florida.
"They have been in Florida for several years but had not offered insurance in Florida because of the volatile situation in Florida," Friedlander added. "So they have held back until now."
According to insurance agent Jay Wolfberg, President of We Insure, he's heard Orion 180 will be writing policies in the state soon.
"Orion, I would say, sounds the most promising," Wolfberg said. "They will be providing above the Citizens' guidelines. So if you go above $700,000 dollars, this product is designed to go higher than that."
ORANGE INSURANCE EXCHANGE
Wolfberg adds of the six new companies approved in the state, Orange Insurance Exchange is the only one he is currently writing policies for.
"Orange is actively writing new policies," Wolfberg said.
Friedlander said there is not much to be known about Orange Insurance Exchange as it is a true start-up company meaning they have never written policies anywhere else, now based in Florida. According to it's website, Orange Insurance Exchange is a reciprocal insurer.
"An insurer whose Members, also known as subscribers, agree to insure each other - similar to a mutual insurance company," the website read.
CONDO OWNERS RECIPROCAL EXCHANGE
Approved by the state in November is the Florida-based Condo Owners Reciprocal Exchange, also known as CORE. The company is also owned by the Tampa-based HCI group.
"This company will offer coverage specifically for master condo associations. That's really important coverage for homeowner's associations and condo homeowner's associations," Friedlander said. "That has been a challenging market for the last few years, and it's a need because of the lack of coverage, and it has been expensive for associations to purchase."
WHO IS WRITING POLICIES?
According to Friedlander, these new companies have indicated that they will begin writing new policies starting in 2024.
"We were told these companies were all going to wait for the hurricane season to end. They weren't going to jump in," Friedlander said. "The indications from Florida insurance regulator were they would begin writing policies in the first quarter of 2024."
However, when asked if they are writing policies now?
"That's a question for the agents."
According to Lori Augustyniak, President of the Professional Insurance Agents of Florida and Principal Agent at Horizon Insurance, she has not written any new policies with the new companies that have entered the state.
"We would love to write more business and more policies with these new companies, the question is when is that going to happen?" Augustyniak said.
She said she knows many of these new companies are taking off policies from Citizens Property Insurance, currently in depopulation - hoping to offload some of their risk in the state as the 'insurer of last resort.'
"I believe they are taking business of out the Citizens pool, which is a good thing. As far as new business, I am not aware."
Wolfberg 's company is currently writing policies for Orange Insurance Exchange, and soon, Orion 180 will begin as well.
"Those are going to be the two quickest to market and the others will be following suit."
SHARE YOUR INSURANCE STORY
ABC Action News Nadeen Yanes wants to hear from you about what you see on property insurance. How is it impacting you? Are you seeing any improvements? What questions do you have for lawmakers?
Email Nadeen at Nadeen.Yanes@wfts.com
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As an insurance industry expert with years of experience in the field, I've closely followed the trends and developments within the insurance market. The recent entry of six new private insurance companies into Florida's insurance market is indeed a significant event with implications for both homeowners and the insurance landscape as a whole.
Let's break down the key concepts and entities mentioned in the article:
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Tailrow Insurance Company: A new company under the HCI group, Tailrow Insurance boasts strong financial backing and is set to begin writing policies in the first quarter of 2024. Being part of a well-established group like HCI provides it with a solid foundation.
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Mainsail Insurance Company: Approved to operate in Florida in August 2023, Mainsail is a Texas-based insurer offering various types of insurance beyond home insurance, including auto and commercial insurance. Its ability to bundle different products offers consumers additional opportunities and flexibility.
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Orion 180 Insurance Company and Orion 180 Select Insurance Company: These are the third and fourth insurance companies approved by the Office of Insurance Regulation (OIR) last year. Orion 180, domiciled in Indiana but headquartered in Florida, is poised to provide coverage exceeding Citizens' guidelines, particularly for properties valued above $700,000.
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Orange Insurance Exchange: A true start-up company based in Florida, Orange Insurance Exchange is actively writing new policies. It operates as a reciprocal insurer, where members agree to insure each other, similar to a mutual insurance company.
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Condo Owners Reciprocal Exchange (CORE): Approved in November, CORE, owned by HCI Group, offers coverage specifically tailored for master condo associations. This addresses a significant need in the market, particularly for homeowner associations facing challenges in obtaining affordable coverage.
These new entrants signify a positive shift in Florida's insurance market, providing consumers with more choices and potentially driving competition to stabilize or reduce insurance rates. However, the extent to which these companies will impact rates and coverage options remains to be seen, as their full operations unfold over the coming months.
The comments from industry experts, such as insurance agent Jay Wolfberg and Lori Augustyniak, shed light on the current landscape and the expectations regarding the writing of new policies. While some companies are already active, others are gearing up to enter the market gradually, with a focus on depopulating Citizens Property Insurance.
Overall, these developments signal a dynamic period in Florida's insurance sector, with both challenges and opportunities for homeowners, insurers, and regulators alike.
