The steady growth in excess and surplus lines’ business in Florida appears to be leveling off, another sign that the insurance market in the state is settling down after years of turbulence.
“January’s figures signaled a shift, and February 2025 has solidified this trend, revealing a market that is stabilizing rather than expanding at previous rates,” the Florida Surplus Lines Service Office said in a report released this week.
In almost all types of policies, E&S premium dropped significantly in February of this year compared to the same month in 2024, FSLSO reported. Overall, E&S premium was $1.14 billion last month – a 10% drop compared to February 2024.
That followed several years of significant growth for excess and surplus lines as property owners faced escalating premiums and a drop in the number of carriers in the primary market during what was called a claims litigation explosion.
“The growth that has characterized Florida’s excess and surplus lines market over the past several years appears to be leveling off, according to the latest data,” the FSLSO noted. “After a period of steadily decreasing growth rates throughout the latter part of 2024, the market has entered a phase of noticeable plateau, culminating in a flat start to 2025.”
The exception is residential coverage, which produced a mixed bag for surplus lines: HO-3 premium rose about 1% to $40.1 million in February. But HO-3 policy count dropped by 20%, more than any other line, FSLSO reported. Homeowners policy count stood at 5,704, producing an average annual premium of about $7,030.
On the other hand, HO-6 premium for condominium unit owners rose by 32% for the year-over-year period, to $17.2 million. HO-6 policy count jumped by 17%. The average cost per condo policy was $2,382, the office noted. Florida condos continue to face higher premiums and less coverage in the primary market, as well as new safety inspections and upkeep costs following the 2021 collapse of the Surfside condominium building.
Excess commercial property, commercial general liability and commercial package premium fell considerably in February.
The 2-page report can be seen here.
Topics Trends Florida Excess Surplus
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