Paul Adkins, Chairman & CEO, Florida Peninsula Insurance

Paul Adkins, chairman and CEO of Florida Peninsula Insurance, spoke with Invest: about adapting to and finding opportunity amid rapid population growth in the region. “The increase of people moving into Palm Beach County has grown the demand for insurance,” he said.

What is your overview of the home insurance sector in Palm Beach and Southeast Florida, and what trends are emerging?
Last year, I mentioned how the Florida insurance market was in a state of crisis. Many companies went out of business as prices increased. Some of the legislative changes that have occurred have resulted in price decreases, which is good news for the South Florida insurance market. Over the past six months, the average premium we’ve charged for homeowners insurance is down over $500. It has been decreasing almost $100 a month on average. We don’t write commercial insurance, but commercial insurance is seeing decreases from 20% to 30%. The market is getting stronger and prices are decreasing.

How are natural disasters and weather hazards like those in South Florida last year affecting home insurance coverage?
We operate three insurance carriers, the third of which was started in August called Ovation Home Insurance Exchange. Ovation has already grown to 50,000 customers and $150 million in written premiums. Hurricane Milton had an unusual impact in Palm Beach County in that it spawned tornadoes that destroyed 40 homes we insure. Our experience in the last 20 years helped us respond to those tornadoes very quickly. In the overall market, although we had two big storms the industry responded very well. Most of the claims were adjusted within 60 days. I don’t see it having an impact on pricing in the short term. Most insurance companies in Florida had good years financially.

What makes Palm Beach an ideal market and location for Florida Peninsula Insurance to operate in?
The newer building codes work very well. Newer homes and homes with newer roofs performed much better than older homes and homes with older roofs. There is a program called My Safe Florida in which the state provides money to help upgrade your roof. People who took advantage of the program are seeing significant reductions in insurance premiums and a much stronger home.

What insurance services are driving growth, demand, and profitability for Florida Peninsula Insurance?
The increase in the number of people moving into Palm Beach County has grown the demand for insurance. Hurricane Helene caused massive flood problems, resulting in an increase in demand for flood insurance. We are exploring entering the market for insuring condominiums buildings. We are seeing a growing need for that product. A number of big condominium writers have left, so we see that as an opportunity.

What insurance and coverage-related advice would you give to individuals, families, homeowners, renters, and landlords moving into Palm Beach and South Florida?
The first thing is to make sure you have insurance. Even though we haven’t been hit by a major storm in several years, there is still a high likelihood to have windstorm damage at some point. Flood insurance is also essential. Even people outside of flood zones are at risk of flooding. Flood insurance is inexpensive relative to the potential risks.

How is Florida’s increasing population affecting Florida Peninsula Insurance’ business activity?
It is creating growth and, because of that growth, we’re seeing a greater understanding of high quality buildings. Contractors and material providers are following the population growth. There are many new services sprouting up that are taking advantage of the population growth.

What are the primary challenges facing the insurance sector in Palm Beach and Southeast Florida?
The two main risks in Palm Beach County are the potential of hurricanes and flooding. It’s important to educate the population that these are both real risks, and they should evaluate how to protect themselves.

How does sustainable and resistant housing impact insurance?
We offer significant discounts on insurance for customers with sustainable housing. We are providing greater coverage of solar panels. We provide advice on water mitigation services, such as how to turn off the water to your house to stop a massive leak.

How does Florida Peninsula Insurance differentiate itself from other insurance providers in the region?
Our biggest focus is customer experience. We want to provide the best customer experience of any insurance company in Florida. We have some of the highest customer experience scores in the country. On the claims side, we’ve created a function called “Customer Advocates.” We have a team of people that customers with claims can communicate with and receive immediate help. We are also rolling out different options for customers to pay premiums and claims electronically. We can direct deposit to a bank account instead of sending out a check. We updated our website for various carriers to provide more information on how to prepare your home for storms, submit a claim, and evaluate your home to reduce risk.

How does Florida Peninsula Insurance use and integrate AI?
We were one of the first to integrate AI for the capturing and analysis of data into our everyday operations. We use it to make sure we have the best information on homes. For example, when a homeowner makes a quote, we are querying 40 different services to provide information about the home. We will know when the home was built, what permits have been issued, and important characteristics of the home. This makes it easy for the customer to write with us. Having that data has sped up the ability to generate quotes from 15 minutes to 15 seconds. We use AI to help route customers to the best person to answer their questions and solve their issues.

What will be the top priorities for Florida Peninsula Insurance in the next two to three years?
We will continue to roll out new coverages and products. We will be in new product lines such as condominium buildings and commercial insurance. We are looking to expand outside of Florida. We will continue to improve customer experience and the utilization of AI in our overall business model.