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

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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.

SFRI increases 13% in January

Average rates increased by 13% in January.  Carriers have begun a campaign to increase rates as a result of less capital and higher reinsurance costs.  Amrisc has announced price increases.  Lloyds holding the line on any rate decreases for renewals.  However, rate increases are dampened by poor economic conditions.  For the first time, demand is playing a larger role in the pricing of property insurance.  Florida has gone from near double-digit gdp growth to a decline.  Exposures and replacement value costs are declining as well.  

SFRI drops 18% in December

Although everyone is geared up for the hard market in 2009, it clearly did not get started early.  All construction classes saw rate decreases in December as the demand for coverage plunged.  

SFRI Stays relatively flat

The November SFRI dropped from 0.86 to 0.85. News of capacity reductions and higher reinsurance rates in 2009 have the markets predicting harder times. However, demand for insuance has dropped considerably when compared to 2006 and 2007.  Construction of commercial buildings has nearly slowed to a halt.  Businesses are willing to retain more risk in an environment where it becomes more important to save cash.