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Florida has become a desired destination for the wealthy who primarily settle in the states coastal cities such as Miami, Fort Lauderdale, Boca Raton and Tampa. The Sunshine State has seen a growing number of affluent individuals migrate from high-tax states to capture new financial opportunities. However, even with the influx of wealth migration, Florida is seeing total migration slow. Over the last 3 years Florida’s migration has cooled dramatically, by approximately 93%, as rising costs for real estate and insurance, and the heightened risk of natural disasters, has reversed the migration trend. Is Florida Facing an Affordability Crisis? In 2025, Florida saw just 22,517 new residents move in from domestic migration. This low number, coupled with an increasing number of residents moving out of Florida, has led to questions about whether Florida is in an affordability crisis. Although affluent newcomers are moving to the state, companies requiring employees to return to office post-Covid-19 and the threat of natural disasters are resulting in Florida seeing a growing number of lower income residents leave the state. Affluent individuals that move to Florida are looking for, and building, new luxury residences that many Florida natives cannot afford, especially considering that Real Estate and Development accounts for 22% of Florida’s wealth profile in 2026. This raises the cost of living and also isolates the people that cannot afford the “new norm”, suggesting the existence of an affordability crisis. Wealth Migration Drives Costs Up The obvious cost implications from the wealth migration are seen in housing affordability . However, an overlooked aspect is the costs on businesses, specifically the volatile insurance cost drivers. Focusing on property and casualty insurance premiums, it’s clear to see they have risen sharply in recent years . The most impacted regions of this spike are the coastal and high-risk areas that are susceptible to hurricanes. Businesses are now also tasked with managing this new cost burden. As premiums increase, the cost to insure locations, protect assets and maintain required coverage is becoming more challenging. This shows that the growing affordability crisis in Florida extends well beyond individual residents, it impacts businesses just as hard, where rising and unpredictable expenses are impacting how businesses operate, grow and invest. Flexible Financing is Where Standard Premium Fits In As the pressure from increasing costs intensify, businesses are looking for ways to better manage large, recurring expenses without disrupting day-to-day operations. For many businesses, insurance premiums must be paid upfront, creating a substantial cash outlay that can strain working capital, particularly as premiums rise. Standard Premium plays a key role in helping businesses navigate this challenge by offering flexible premium financing solutions that allow companies to spread insurance payments over time. This approach enables organizations to preserve liquidity, maintain coverage and better align expenses with cash flow. Through Standard Premium’s flexible financing solutions, we help establish better payment performance, lowering risk for delinquency and increasing long-term relationships with clients. Our flexible financing solutions free clients from a rigid payment cycle and allows them to collaborate with us on a financing solution that works best for them. In a market like Florida, where insurance costs are both elevated and unpredictable, this flexibility becomes increasingly important. Rather than absorbing large upfront costs, businesses can structure payments in a way that supports ongoing operations and financial planning. As affordability concerns continue to grow, the focus is shifting from reducing costs to managing them more effectively. For many businesses, that shift is becoming essential to staying resilient and prepared for Florida’s new wealth environment. Looking Ahead It’s crucial that we continue to monitor Florida’s growth trajectory, and while the state remains attractive to wealth and investment, the conditions that once made it an easy financial decision are becoming more complex. Migration may continue, but at a slower and more selective pace since rising housing costs, increasing insurance premiums and ongoing climate risks are likely to play a larger role in shaping where people choose to live and work. As costs continue to rise and uncertainty becomes the norm, businesses can’t afford to take a reactive approach to managing expenses. The question is no longer just whether Florida is growing, but who that growth ultimately serves. If you are looking to take control of your insurance strategy, contact Standard Premium today to learn how a national presence in premium financing can help you protect assets, maintain coverage and operate with greater financial flexibility. Contact Brian Krogol: Phone: (800) 592-7753 ext. 220 Email: bkrogol@standardpremium.com LinkedIn: Brian Krogol

March 9, 2026

February 24, 2026

William Koppelmann*

By William Koppelmann, CEO of Standard Premium Finance Holdings, Inc. (OTCQX: SPFX) www.standardpremium.com Natural disasters, including hurricanes, wildfires, floods, and other catastrophic events, have become more frequent and severe in recent years. According to a report by insurance broker Aon, the $126 billion in losses from natural disasters in the United States is triple the average over the last century. Over the last forty-five years, the total cost of damages from weather and climate disasters in the U.S. approximates $2.915 trillion 1 (as of February 2025). These disasters cause extensive physical and financial damage, while disrupting communities, economies, and public services. In response to these challenges, the implementation of federal insurance programs has played a critical role in mitigating the financial impact of such events and supporting recovery efforts. This paper explores the necessity of federal insurance programs and the need for expansion to include additional coverage types. Citing key examples such as the devastation caused by Hurricane Helene in North Carolina and recurring wildfires in California, this paper explores the current financial burdens created by gaps in coverage availability and affordability. With the onset of the 2025 hurricane season lending itself to several named hurricanes and tropical storms by August, the increasing frequency and severity of natural disasters underscore the importance of robust insurance mechanisms to protect individuals, businesses, and communities. Private insurers often face limitations in providing affordable and comprehensive coverage for catastrophic events. Federal insurance programs step in to fill this gap, offering financial protection and facilitating disaster recovery. Natural disasters disproportionately affect specific geographic regions. Federal insurance programs help ensure that residents and businesses in high-risk areas can obtain coverage that would otherwise be unavailable or prohibitively expensive through private insurers. Disasters cripple local economies by disrupting businesses and reducing property values. Federal insurance programs provide a financial safety net, enabling quicker recovery and stabilization. Without federal insurance programs, the government would need to allocate significant emergency funds to cover uninsured losses. Structured insurance programs distribute risks and costs more efficiently.