The Insurance Information Institute (Triple-I) reports that Florida’s property insurance market is experiencing improvements, attributed to legislative reforms that address legal system abuse and fraud. The reforms, established in 2022 and 2023, have paved the way for stability in the market as the 2024 Atlantic hurricane season approaches.

Sean Kevelighan, CEO of Triple-I, emphasized the importance of preserving the reforms to prevent regression caused by legal exploitation. He highlighted the ongoing depopulation of Citizens Property Insurance Corp. and the approval of eight new property insurers by the state regulator as positive developments contributing to the market's recovery.

Despite insurers in Florida experiencing underwriting losses for eight consecutive years, the losses have decreased significantly. In 2023, the top 50 private insurers in the state reported a cumulative underwriting loss of $190.8 million, a substantial improvement from the $1.80 billion loss in 2022 and the $1.52 billion loss in 2021.

Although average home insurance premiums in Florida are projected to rise this year, the increase is expected to be more gradual than in previous years. Some regional insurers have even filed for small statewide average rate reductions. These changes suggest that the recent legislative reforms are starting to yield positive outcomes.

In 2023, Florida's defense and cost-containment expense ratio dropped to 3.1 from 8.4 in 2022, indicating a significant decrease in litigation impact. Direct incurred legal defense expenses decreased to $739 million in 2023 from $1.6 billion in 2022. Comparatively, the incurred defense costs in California and Texas, the two largest U.S. insurance markets, were $401.6 million and $284.7 million, respectively, in 2023.