Happy Valentine's Day! In this week's Big I Buzz, we are discussing how Florida's homeowners premium will change and what surveys are showing for industry job growth.

Homeowners to Face Huge Premium Jump as Insurers Seek 50% Premium Hike

Inflation and a surge in insurance claims are causing Florida homeowners to confront substantial increases in premiums, with private insurance companies Castle Key and Amica seeking regulatory approval for rate hikes of 53% and 54%, respectively. The spike is attributed to various factors, including frequent severe convective storms like tornadoes and hailstorms, in addition to other extreme weather events. Despite the exit of some insurers from the Florida market, new risk capital is entering the state, allowing insurance companies to manage weather-related risks. However, the critical question arises: Can Florida homeowners afford the escalating costs of protecting their homes? With the state's average homeowners insurance premium already at $6,000, this trend follows a pattern seen in 2023, where Florida topped the list of states with the most significant homeowners insurance hikes.

Jacobson: Survey Shows 'A Significant Pause' in Industry Job Growth'

Over half of insurance companies anticipate expanding their workforce in the coming year, while 77% expect a boost in revenue, according to the latest labor market study by Aon and the Jacobson Group. The research reveals that 52% of carriers plan to increase staff, 38% intend to maintain current levels, and 10% plan reductions. Although the hiring outlook may seem promising, it represents the lowest since 2012, signaling a significant shift in growth strategies within the industry. The study, covering around 275,000 employees, indicates that while layoffs have impacted the insurance sector recently, there is a notable pause in extensive growth rather than widespread job cuts. Changes in automation and substantial growth in annuity lines are noted, with expectations that the 2024 renewal cycle will reflect the full impact of rate increases from the past two years, positioning companies for potential expansion in 2025. Despite challenges, the industry's total employment has reached three million, with a focus on agents and brokers contributing to recent growth.

For more news, check out the Action News section of our weekly e-newsletter, Big I Buzz. If you aren’t subscribed, click  here  to add your email to our emailing list.