Florida's property and casualty insurance market is experiencing stabilization following legislative reforms aimed at curbing legal system abuse and claim fraud, according to a recent Issues Brief by the Insurance Information Institute (Triple-I), affiliated with The Institutes.
Over the past two years, litigation related to claims has significantly decreased in Florida. As a result, average home insurance premiums have remained nearly stable, with 40% of home insurers requesting rate decreases from the state's insurance regulator in 2024. Additionally, eleven new property insurers have entered the market, and six of the top ten national insurers writing residential policies in Florida expanded their market share in 2024.
"While it took some time to get through the massive amounts of litigation fueled by billboard attorneys just before reform was passed, citizens of the Sunshine State are now clearly seeing the benefits of a more stable and affordable insurance marketplace," said Triple-I CEO Sean Kevelighan. "With such visible progress being made it is important that the reforms remain so Floridians no longer fall victim to the legal system abuse of the past such as assignment of benefits claim fraud schemes."
The impact of reforms from 2022 and 2023 is evident in premium rate changes for property insurance. Homeowners' rates in Florida increased at a slower pace in 2024 compared to national trends. S&P Global Market Intelligence reported that Florida's average rate filing was only 1% in 2024, making it the lowest in the U.S., while over 30 states experienced double-digit average rate increases last year.
Citizens Property Insurance Corp., Florida's state-backed insurer of last resort, saw its policies in force decrease by nearly 40%, from a peak of 1.4 million in September 2023 to under 850,000 customers as of February 28, 2025. This reduction reflects improvements in the private market's financial stability, reducing potential "hurricane tax" risks due to insufficient funds for storm claims.
Reforms have also positively affected Florida's private passenger auto market. Several national auto insurers plan to file for rate decreases in Florida for 2025 after witnessing a significant drop—500% year-over-year—in auto glass claim lawsuits following a ban on assignment of benefits for these fraudulent claims.
As Florida's Legislature begins its session today, concerns arise over proposed bills that could reintroduce one-way attorney fees for certain types of claim litigation—a reversal from previous reforms that eliminated these fees.
"Despite continuing market and political pressures, Florida policyholders and taxpayers stand to benefit tremendously from the 2022 and 2023 legislation. Given the pain of recent years and the continuing perils in this catastrophe-prone state, it's important for all stakeholders to support continued reform," Triple-I’s Issues Brief concluded.