While Hurricane Isaias briefly disrupted what has been a relatively quiet Atlantic hurricane season, any subsequent losses are expected to be dampened by recent improvements in pricing and underwriting among insurers in the Florida market, according to a new AM Best report.
A newly issued Best’s Commentary, titled “Hurricane Isaias Insured Losses Likely Limited to an Earnings Event” notes that the storm losses are not expected to deplete surplus levels in a way that alters capacity among insurance providers in the Sunshine State. This would help the Florida market avoid any squeeze that could affect pricing, or more specifically reinsurance capacity and pricing.
According to the report, insured loss estimates are expected to be in the low single digit range in billions of dollars. The strongest winds during Hurricane Isaias were recorded on the western side of the storm, blowing water away from the coast, limiting storm surge damage and potentially flood-related losses.
Florida’s property insurance market has become highly diversified across companies. The top 10 property insurers in Florida account for less than half of the state’s total market, below the national average of 54%. The report also notes that more than 70 active insurers in Florida have at least half of their property business within the state. Many larger insurance groups have specific companies dedicated to Florida. Such companies are considered part of the group of insurers concentrated in Florida. “This again highlights the difficult nature of operating in Florida, as insurers may wish to protect their capital,” said Christopher Graham, senior industry analyst, AM Best.
Legislative reforms and incentives have led to the depopulation of Citizens Property Insurance Company, the state-backed insurer of last resort, with policies spread among several other insurers in Florida. The successful depopulation of Citizens, coupled with a relatively mild hurricane season so far, will keep Citizens intact as Florida’s insurer of last resort.
To access the full copy of this market segment report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=369674.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
Copyright © 2026 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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