Florida Premiums Drop Amid Post-Reform Stability, New Triple-I Insurance Brief Shows

Business Wire

MALVERN, Pa.--(BUSINESS WIRE)--
Legislative reforms targeting legal system abuse and claim fraud in Florida have continued to help stabilize the Sunshine State’s property/casualty insurance market, contributing to rate-filing reductions by dozens of property and auto insurers operating in the state as claim-related litigation plummets, according to the Insurance Information Institute’s (Triple-I’s) latest issues brief, Florida: State of the Risk.

“Florida consumers are experiencing tangible benefits of the state’s legal system reforms,” said Sean Kevelighan, CEO of Triple-I. “Premiums are stabilizing, competition is increasing, and homeowners and drivers are seeing real savings while insurance coverage remains readily available.”

With 18 new property insurers entering Florida since the reforms and expanding market share among existing carriers, renewed competition in the private home insurance market has facilitated the lowest number of policies administered by Citizens Property Insurance Corp., the state-run insurer of last resort, in over a decade. Policies in force declined by 50% from 2024 due to successful depopulation efforts. Later this year, current Citizens policyholders will benefit from an average statewide rate decrease of 8.7%, the largest in the insurer’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 fueled escalating premium rates and led to insurer insolvencies and voluntary market withdrawals, prompting lawmakers to enact sweeping litigation reforms curtailing one-way attorney fees and assignment of benefits (AOB) practices.

Initiated in 2022 and 2023, the reforms initially triggered a temporary surge in filings as plaintiffs’ attorneys rushed to file suits ahead of implementation. The trend reversed with insurance litigation filings declining significantly through 2025. Florida also began tracking litigation filings through the Property Insurance Intent to Initiate Litigation (PIITIL) system, which requires policyholders to notify insurers at least 10 days before filing suit. Legal filings involving AOB continued a pronounced downward trajectory.

Ongoing Market Momentum

The reforms’ impact is especially visible in Florida’s personal auto insurance market. Florida recorded the lowest personal auto liability loss ratio in the nation in 2025; the state’s lowest in 15 years. The market’s physical damage loss ratio fell to 49.5%, signaling a steady decline from 112.0% in 2022.

This improvement translated into tangible savings for drivers in 2025:

The five largest auto insurers, representing 78% of Florida’s market, implemented average rate reductions exceeding 6% through mid-year.
42 personal auto insurers filed for rate decreases over the prior year, including 32 within the last six months.

Homeowners are also seeing relief. Over the past two years, more than 185 residential property rate filings reflected either decreases or flat rates. Homeowners’ insurance rate changes in the state have continued to flatten even as rates trend upward nationally.

Affordability Challenges Persist

Florida’s property insurers are expected to report strong underwriting results for 2025 following a year without U.S. hurricane landfalls. However, new risks are emerging. The state is experiencing its most severe drought in more than 25 years, resulting in hundreds of wildfires since Jan. 1, 2026, including areas historically considered low risk.

“The rapid shift from hurricane exposure to wildfire threat underscores Florida’s dynamic and evolving risk landscape,” said Kevelighan. “Continued vigilance, sound underwriting discipline and sustained policy reforms remain essential to preserving coverage availability and affordability in one of the nation’s most complex insurance markets.”

About the Insurance Information Institute (Triple-I)

Since 1960, the Insurance Information Institute (Triple-I) has been the trusted voice of risk and insurance, delivering unique, data-driven insights to educate, elevate and connect consumers, industry professionals, policymakers and the media. An affiliate of The Institutes, Triple-I represents a diverse membership accounting for nearly 50% of all U.S. property/casualty premiums written. Our members include mutual and stock companies, personal and commercial lines, primary insurers and reinsurers – serving regional, national and global markets.

About The Institutes

The Institutes® are a not-for-profit comprised of diverse affiliates that educate, elevate, and connect people in the essential disciplines of risk management and insurance. Through products and services offered by The Institutes 20 affiliated business units and backed by more than 115 years of experience as a trusted knowledge partner, we empower people and organizations to help those in need with a focus on understanding, predicting, and preventing losses to create a more resilient world. Learn more at Global.TheInstitutes.org.