Insurance Companies Castle Key and Amica Requesting 50% Premium Increases
Two insurance companies in Florida, Castle Key Insurance and Amica Mutual Insurance, have recently made requests to raise their premiums by over 50%. These proposals will now be reviewed by the Florida Office of Insurance Regulation.
Despite the significant increases being sought, experts in the insurance industry have noted that this year’s hikes are generally lower compared to those seen in the previous year. Mark Friedlander, spokesperson for the Insurance Information Institute, highlighted that the requested increases primarily target condominiums and second homes. This can be attributed to the rising costs of repairs or replacements, as well as an increase in severe weather-related losses.
Many homeowners in Florida are expressing concerns about the affordability of their insurance premiums, with some experiencing substantial hikes upon renewal. However, Friedlander emphasizes that these specific cases should not be viewed as indicative of a broader trend in rising rates.
Analyst comment
Negative news: Insurance Companies Castle Key and Amica Requesting 50% Premium Increases
As an analyst, I believe there will be pushback from policyholders regarding the substantial premium increases. However, it is likely that the Florida Office of Insurance Regulation will approve some of the requested increases, given the rising costs of repairs and severe weather-related losses. Policyholders may continue to experience affordability concerns, but these cases should not be seen as indicative of a broader trend in rising rates.
