by Bethany Blankley
As part of the last leg of a four-country trade mission, Florida Gov. Ron DeSantis met with political and business leaders in the U.K. to address ongoing and new trade relationships. He also secured a commitment from British companies to increase access to property insurance carriers to stabilize Florida’s market.
While in London, DeSantis met with Foreign Minister James Cleverly and MP Kemi Badenochs, the Secretary of State for Business and Trade and president of the Board of Trade in the UK.
He also met with Tim Cerio, president and CEO of Citizens Property Insurance Corporation, to discuss the role UK reinsurance companies can play in Florida’s property insurance market. In doing so, DeSantis secured a commitment from companies at the meeting to increase access for carriers serving Florida policyholders.
“Access to affordable reinsurance options for Florida carriers is important for the stabilization and long-term growth of our property insurance market,” DeSantis said. “Florida is home to one of the largest and most complex insurance markets in the world, and I was happy to provide an update about recent legislative reforms that have made the market more attractive to businesses.”
Citizens Property Insurance President and CEO Tim Cerio said, “Ensuring that Florida carriers can obtain reinsurance at a reasonable price reduces the number of enrollments and renewals within the Citizens portfolio and results in a win for Florida policyholders and taxpayers alike.”
Florida’s insurance-related economic sector includes more than 4,800 businesses responsible for writing over $209 billion worth of premiums. The insurance industry accounts for over 213,000 jobs in Florida and generated roughly 3.5 percent of Florida’s GDP in 2020.
The commitment is a continuation of ongoing efforts by the governor to promote market stability and competitiveness and ensure policyholders are protected when disasters occur.
Earlier this year, DeSantis signed HB 837 into law to modify the “bad faith framework,” eliminate one-way attorney’s fees and fee multipliers, and ensure that Floridians aren’t held liable for damages if the person suing is found to be more at fault.
Last December, DeSantis also signed SB 2-A into law to implement litigation reforms to ensure policyholders have access to quality, affordable private market property insurance. The law eliminated one-way attorney fees for property insurance, strengthened the regulatory authority of OIR, established a new optional state reinsurance program, and requires insurers to communicate, investigate and pay valid claims more promptly.
It also established the Florida Optional Reinsurance Assistance program, which operates in conjunction with the Reinsurance to Assist Policy (RAP) program, to provide four optional reinsurance layers.
Last May, DeSantis also signed SB 2-D into law to help alleviate rising insurance costs, increase insurance claim transparency, and crack down on frivolous lawsuits. The bill allocated $2 billion in reinsurance relief through the RAP program and $150 million for grants through the My Safe Florida Home Program. The law also prohibits insurance companies from denying coverage based on the age of a roof if it’s less than 15 years old.
The U.K. is one of Florida’s most significant economic partners and is the top foreign investor in the state, the governor’s office says.
British affiliates in Florida having an estimated total holdings of over $18 billion, with over 350 British companies employing 67,000 Floridians.
The UK is also Florida’s eighth-largest trade partner. Bilateral trade reached $5.8 billion in 2022 and grew by 119% over the last five years.
The UK-Florida tourism relationship is also strong. Last year, over 1.1 million Brits visited Florida from the UK. The UK every year ranks as the second largest group of international visitors to Florida, behind Canadians. Over 79,000 British born residents reside in Florida. Florida’s three major airports also have nine direct flights to England and Scotland.
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Bethany Blankley is a regular contributor to The Center Square.
Photo “Ron DeSantis Meets with James Cleverly” by Governor Ron DeSantis.
