In a move that underscores the enduring volatility of Florida’s insurance landscape, Tampa-based Trusted Resource Underwriters Exchange (TRUE) is seeking regulatory approval for a 31% increase in its multiperil homeowners’ insurance premiums.
The proposal, submitted during a public rate hearing on June 17, would elevate the average annual premium for TRUE’s policyholders by approximately $1,357—a substantial jump in a state already facing some of the nation’s highest property insurance costs.
Request Highlights Fragile Market Conditions
TRUE’s executives argue that the increase is necessary to ensure solvency and operational stability amid mounting reinsurance costs and the persistent financial fallout from a turbulent hurricane season. “Our internal models indicate a 60% rate adjustment is actually warranted,” CEO Anthony Scavongelli told state regulators, citing underpriced legacy policies and a lack of geographical risk diversification as contributing factors.
If approved, the requested rate change would mark the first of its scale in Florida’s property insurance sector this year—a sector that has otherwise seen a moderation in rate hikes following legislative efforts to stabilize the market. The Florida Office of Insurance Regulation (OIR) mandates hearings for rate requests exceeding 15%, and TRUE is now the only insurer among the state’s 87 active property underwriters to trigger such a review in 2025.
Struggles of a Young Insurer
TRUE, a relatively new entrant that began writing business in Florida in 2021, is currently managing fewer than 20,000 active policies—placing it near the bottom half of the state’s property carriers in terms of volume. The company has undergone two executive overhauls since its launch, with the current leadership team assuming control in 2024.
The insurer is navigating what Scavongelli describes as a “difficult market environment,” citing inflationary pressures and the cost of catastrophe bonds and other reinsurance mechanisms as primary stressors.
“We’re essentially playing catch-up,” said Yanfei Atwell, TRUE’s Director of Actuarial Services. “This rate filing represents a correction for missed annual adjustments and aligns us with required actuarial adequacy going forward.”
Regulatory Scrutiny and Legal Reform
During the hearing, regulators appeared cautious but measured in their response. OIR actuary Daniel Zhong challenged some of TRUE’s justifications, flagging inconsistencies and questioning the underlying data supporting the proposed hike.
Zhong’s concerns reflect a broader regulatory shift in Florida. In recent years, lawmakers have enacted sweeping tort reforms aimed at reducing litigation frequency, which previously contributed significantly to claims inflation. As a result, the state’s average premium increase in 2024 hovered around just 1%, according to a February report by S&P Global—among the lowest in the country.
Industry analysts attribute this moderation to both legal reform and favorable catastrophe losses in 2023. Reinsurers, once hesitant to deploy capital in Florida, have reportedly eased rates amid a decline in litigation risk.
A Sector Still in Recovery
Despite those improvements, scars from the prior insurance crisis remain fresh. Between 2019 and 2022, at least ten property insurers collapsed in Florida, caught in a maelstrom of natural disasters, inflated claim costs, and predatory litigation. TRUE’s request serves as a reminder that, for many carriers, the road to long-term profitability remains steep.
“The intent behind this filing is to return TRUE to a sound financial footing under its new management,” said Susan Anderson, the insurer’s general counsel.
A final decision from OIR is not expected until after the public comment window closes on July 1. Until then, the market will be watching closely to see whether regulators believe TRUE’s rate path is justified—or a sign of renewed instability ahead.
