Rates continue slight upward trend

Rates in September continued to improve slightly. Standard construction rates continued to hang in the 1.20 - 1.30% range. The increase was driven more by increases in rates for superior construction, which are back to the 1% range

Rates improve slightly in August

Rates increased a tiny amount in August as carriers began to feel capacity constraints. However, just as several large carriers began to cut off agents from writing wind coverage, others stepped back into the market after being unheard from for several months. Demand for insurance remains weak as construction in Miami-Dade county has essentially shut down.

Rates poised for increase

The SFRI increased slightly in July over June. Standard markets remain aggressive in South Florida and willing to take on more cat exposed risks. However, for the first time, rates seem poised to increase. We expect to see 5-10% increases over the next 6 months. Although carriers have been talking about the hard market since last October, there has been no real action because capacity has not been an issue. However, several large players have stopped increasing their exposures recently. In addition there are positive signs of economic recovery. Real decreases in capacity combined with economic optimism is the formula needed to bring rates up to actuarially sound levels. And a storm could be the catalyst to get them moving.

Rates drop slightly in June

The SFRI dropped slightly from 0.83 to 0.80 in June. Rates on small to mid-sized commercial properties remain flat. Despite the efforts of the large domestic surplus lines carriers and Lloyds to promote market discipline, over supply and dampened construction activity are keeping rates low. Standard markets continue to be more aggressive in Florida than in the past. The passage of a bill that caps rate increases to 10% does not give much hope that demand will increase in the short term from accounts leaving Citizens.

Rates Improve slightly in May

The SFRI increased more than 3% in May. Talk of the hard market continues but has done little to increase rates. Underwriters have been disappointed that reinsurance increases have not translated into higher retail prices. However, the economy and aggressive standard markets have kept rates steady. Travelers is reported to be "very aggressive" on new business in Florida while holding or raising renewal rates. We may not see tightening until hurricanes begin to form in the Atlantic and standard markets begin to pull back

Good article

CNN Article on Insurance Market

SFRI Drops 6%

The SFRI dropped 6% in April vs. March demonstrating that the hard market is not a reality yet for mid-sized property insurance in the Tri-County area.  Rates for standard construction were flat.  A drop in rates for superior construction (Fire Resistive and Modified Fire Resistive) caused the index decline.  Overall the market continues to wait for rate increases, but demand for insurance in Florida overall is weak due to a lack of new construction and an increase in standard market activity.  According to the Florida Surplus Lines Office, property and casualty premium and policy count dropped 5% and 8% respectively in the first quarter of 2009 vs. the same period in 2008.

Rates improve in March

The SFRI increased by 13% in March led by improvements in pricing for standard construction (Joisted Masonry and Masonry Non-Combustible).  Competition for business remains fierce given the economic decline in South Florida.