Legislative reforms in Florida have contributed to a more stable property and casualty insurance market, resulting in lower premiums for many homeowners and drivers, according to an April 2 update.
The changes matter because they address longstanding issues of claim fraud and legal system abuse that previously led to higher costs and limited competition. As a result, the state has seen nearly 20 new property insurers enter the market while existing carriers have expanded their share. This increased competition has helped reduce the number of policies managed by Citizens Property Insurance Corp., with its policy count dropping by half since 2024—the lowest level in over ten years.
Litigation related to insurance claims has also decreased significantly. According to the state governor’s office, insurance litigation filings dropped by 23 percent from 2023 to 2024, followed by another decline of 25 percent during the first half of 2025 compared with the same period in the previous year. These numbers are now below levels seen before 2018.
Florida enacted these reforms in response to a situation where it accounted for most of the nation’s homeowners claim-related litigation but only a small portion of actual claims. The legislative measures included limiting one-way attorney fees and assignment of benefits for property insurance claims.
The auto insurance sector has shown similar improvements. In 2025, Florida recorded its lowest personal auto liability loss ratio nationwide at 52.5 percent—the lowest for the state in fifteen years—while physical damage loss ratios also declined sharply from earlier highs. Rate reductions averaged over six percent among top insurers through mid-2025 and have risen further based on recent regulatory filings into this year.
Homeowners are seeing relief too; more than 185 residential rate filings have resulted in flat or decreased rates over two years, with trends stabilizing after several years following national increases. Lower reinsurance costs have played a role as well, leading to an overall price decrease exceeding ten percent on reinsurance last year according to Gallagher Re’s analysis.
The Insurance Information Institute supports stakeholders including consumers, media and policymakers by providing resources in English and Spanish according to its official website. The organization established ties with The Institutes in November 2020 according to its official website and represents more than fifty member companies ranging from regional firms to global carriers according to its official website. It aims to provide data-driven insights on risk and insurance for education purposes according to its official website, ranks as a leading online source for industry information according to its official website, and hosts events that advance understanding about risk management according to its official website.
Looking ahead, observers note that hurricanes Helene and Milton tested these reforms during severe storms last fall but found that reinsurance capacity remained stronger than expected despite significant losses ceded below catastrophe fund layers.
