WEST PALM BEACH, Fla — Another insurance company in Florida is seeking a rate increase and will face a hearing Tuesday with the Office of Insurance Regulation.
Cypress Property and Casualty Insurance of Jacksonville wants an 18.7% yearly rise, according to paperwork filed in Tallahassee.
"This insurance company is reflecting the cost of reinsurance," Lisa Miller, an industry consultant and former deputy commissioner at OIR, said.
"When I look at the document associated with this rate hearing, they are passing on the cost of reinsurance."
Reinsurance is for insurance companies to guard against catastrophic claims.
Miller, who has an insurance newsletter and podcast, said the Cypress action is expected to affect several thousand policyholder of single-family homes.
The proposed rate hike would roughly add $60 a month on a $4,000 annual policy.
“Forty cents of every dollar that we as Floridians spend on our property insurance goes to pay for reinsurance,” Miller said.
Recently it was reported that many Florida insurers posted a profit last year after seven years of losses.
Miller said the increase may be a short-term issue but overall she expects reinsurance costs to moderate.
"I think the 2024 and 2025 rates will really level off," Miller said.