Legislative reforms targeting legal system abuse and claim fraud in Florida continue to stabilize the state’s property and casualty insurance market. According to the Insurance Information Institute’s latest issues brief, Florida: State of the Risk, these reforms have contributed to rate-filing reductions by dozens of property and auto insurers. At the same time, claim-related litigation has declined significantly. As a result, consumers are seeing more stable premiums, increased competition, and broader coverage availability.
Sean Kevelighan, CEO of Triple-I, said Florida consumers are experiencing tangible benefits from these reforms. He noted that premiums are stabilizing, competition is increasing, and both homeowners and drivers are seeing savings while maintaining access to insurance coverage.
Market Competition and Policy Reductions
The Florida property insurance market has seen increased competition since the reforms took effect. A total of 18 new property insurers have entered the state, while existing carriers have expanded their market share. This growth has reduced reliance on Citizens Property Insurance Corp., the state-run insurer of last resort.
Policies in force with Citizens declined by 50% from 2024, driven by successful depopulation efforts. In addition, current Citizens policyholders will receive an average statewide rate decrease of 8.7% later this year. This marks the largest rate reduction in the organization’s 24-year history.
Claim-Related Litigation Stabilizes
Florida accounted for more than 72% of the nation’s homeowners claim-related litigation in 2023, despite representing only 10% of U.S. homeowners claims. This imbalance contributed to rising premiums, insurer insolvencies, and voluntary market exits.
Lawmakers responded by enacting reforms in 2022 and 2023. These changes addressed one-way attorney fees and assignment-of-benefit practices. Initially, filings increased as attorneys rushed to submit cases before the reforms took effect. However, litigation filings declined significantly through 2025.
Florida also introduced the Property Insurance Intent to Initiate Litigation system. This system requires policyholders to notify insurers at least 10 days before filing a lawsuit. In addition, legal filings involving assignment of benefits continued to decline.
Ongoing Market Momentum
The impact of these reforms is also evident in Florida’s personal auto insurance market. In 2025, Florida recorded the nation’s lowest personal auto liability loss ratio, the state’s lowest level in 15 years. Meanwhile, the physical damage loss ratio declined to 49.5%, down from 112.0% in 2022.
These improvements translated into measurable savings for drivers. The five largest auto insurers, which represent 78% of the Florida market, implemented average rate reductions of more than 6% through midyear. Additionally, 42 personal auto insurers filed for rate decreases over the past year, including 32 within the last six months.
Homeowners are also experiencing relief. Over the past two years, more than 185 residential property rate filings reflected either decreases or flat rates. Although homeowners insurance rates continue to rise nationally, Florida’s rate changes have begun to level off.
Affordability Challenges Persist
Despite these improvements, challenges remain. Florida property insurers are expected to report strong underwriting results for 2025 following a year without U.S. hurricane landfalls. However, new risks are emerging across the state.
Florida is currently experiencing its most severe drought in more than 25 years. Since Jan. 1, 2026, hundreds of wildfires have occurred, including in areas previously considered low risk.
Kevelighan said this shift from hurricane exposure to wildfire risk highlights Florida’s changing risk environment. He emphasized the need for continued vigilance, disciplined underwriting, and sustained policy reforms to maintain coverage availability and affordability.
About the Insurance Information Institute
Since 1960, the Insurance Information Institute has provided data-driven insights on risk and insurance. As an affiliate of The Institutes, Triple-I represents members that account for nearly 50% of all U.S. property and casualty premiums written. Its membership includes mutual and stock companies, as well as personal and commercial insurers and reinsurers serving regional, national, and global markets.
About The Institutes
The Institutes is a not-for-profit organization focused on risk management and insurance education. Through its 20 affiliated business units and more than 115 years of experience, the organization provides resources designed to help individuals and organizations understand, predict, and prevent losses.
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