As the Florida market continues to grapple with its challenges, even with the promise of some legislative change being on the horizon through the upcoming Special Session, still carriers are pushing hard for steep rate rises in order to restore profitability., any changes enacted at the end of May Special Session of the legislature are likely to take time to implement and for their effects flow through the local insurance and global reinsurance market.While some quicker fixes are possible that may assist primary carriers directly, and some reinsurers say without wholesale reform of litigation and fraudulent claims, their view on Florida risks won’t change.But primary property and casualty insurers operating in the Florida homeowners market need to continue pushing for rate at the same time, in order to better cover their loss costs, costs of doing business in the state and the costs of litigation.

In the latest round of rate filing hearings at the Florida Office of Insurance Regulation, all being held next week, the rate increases sought range from 23% to as high as 49%.First Floridian Auto and Home Insurance Company has requested an immediate statewide average rate change for new Homeowners Multi-Peril business and from July for renewals of 22.9%.Florida Farm Bureau General Insurance Company and Florida Farm Bureau Casualty Insurance Company are seeking a 48.7% overall rate change for the Homeowners Multi-Peril line of business, effective from July for both new and renewal signings.

These two carriers of the Florida Farm Bureau are also seeking an overall 31.7% rate change for Dwelling Fire business from July as well.Finally, Kin Interinsurance Network, the insurance carrier of the insurtech of the same name (and ) Kin, is requesting a 25.1% rate change for its Homeowners Multi-Peril line of business, effective from April 13 for new and renewal business.These are far from , but what this does continue to show is that primary property insurance rates continue to rise fast, meaning reinsurance will continue to move in the same direction.

As primary insurance rates escalate in Florida, particularly for catastrophe exposed property business, it’s safe to assume reinsurance rates in the state will rise, perhaps accelerate beyond the increases seen earlier this year, at the June and July 2022 renewal seasons.Reinsurers will want to ensure they are reflecting the marketplace in their own pricing, not wanting to continue lagging behind.At the same time, reinsurance capital needs to cover the inflationary factors that are now getting embedded into primary rates, suggesting firming may be more persistent than some currently expect.

is a good and recent example of an acceleration in firming, brought on by global macro factors, as well as investors demand for higher returns to continue assuming peak catastrophe risk exposures.Florida’s primary insurers show rate movements in reinsurance and cat bonds are likely warranted, as if primary rates are increasing in the low to mid-double digit ranges, there’s definitely a need for reinsurance to follow the direction..

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