GOVERNOR RON DESANTIS ANNOUNCES $1 BILLION IN AUTO INSURANCE REFUNDS AS A RESULT OF FLORIDA'S IMPROVING INSURANCE MARKET

The following information was released by the office of the Governor of Florida:

Today, Governor Ron DeSantis was joined by Insurance Commissioner Michael Yaworsky to announce continued progress in Florida's insurance market, with major reforms driving down rates, attracting new insurers, reducing litigation, and delivering significant savings for Florida consumers. The governor highlighted the success of Florida's insurance reforms, which are now benefiting both homeowners and auto policy holders statewide. The governor also announced that, thanks to improved market conditions, Progressive will refund nearly $1 billion to Florida auto policyholders, reflecting reduced losses and strong savings tied directly to the state's tort and insurance reform efforts.

"Florida's insurance market is stabilizing with decreasing auto and home insurance rates, and frivolous litigation is declining,"said Governor Ron DeSantis. "This year, Florida's top five auto insurers are averaging over a 6% rate reduction, and we've secured nearly $1 billion in credits for Progressive auto policyholders and the other carriers are expected to follow suit soon. Also, 17 new companies have entered the homeowners' market, 33 companies have filed for rate decreases, and reinsurance market rates have declined.

"Florida's insurance market continues to see great stability and the strong underwriting gains in the auto market is just the latest sign of success since Florida's historic tort reforms,"said Florida Insurance Commissioner Mike Yaworsky."OIR has been diligent in communication with auto insurance companies to proactively ensure credits owed to policyholders are paid, and millions of consumers will start feeling the benefits with many companies in the process of issuing refunds. Companies must act in the best financial interest of Florida consumersplease know that OIR is fully aware of the books, and we are watching. So do the right thing, come to us first before we make you comply with the law."

"Florida's historic insurance reforms laid the groundwork necessary for our insurance market to strengthen. Auto insurance rates have dropped so much that policyholders are now starting to receive refunds from their insurance company,"said Chief Financial Officer Blaise Ingoglia."It's a good day when the insurance companies are the ones sending the checks to the policyholders instead of receiving checks from policyholders. I have said since day one that I will fight for the policyholders, not insurance companies or trial attorneys. Thank you Governor DeSantis and the legislature for continuing to make our insurance market better for Floridians."

Since the passage of historic reforms, Florida's property insurance market has experienced record growth and stability. Seventeen new insurance companies have entered the marketplace, bringing with them more than $574 million in policyholder surplus to support expansion in Florida's property sector. Today, more than 7.61 million residential insurance policies are in force across the state, making Florida one of the largest property markets in the nation. Domestic property insurers reported $954 million in net income at the end of 2024up from $292 million in 2023 and reversing a $741 million loss in 2022.

HOMEOWNERS:

Homeowners are also seeing relief. Since reforms were enacted, the Office of Insurance Regulation (OIR) has received more than 150 residential filings for rate decreases or zero percent increases. Since January 2024, 33 companies have filed for rate decreases, while 46 companies have requested no change or 0% increases. Florida Peninsula Insurance Company, one of the state's largest insurers, requested its biggest rate decrease in company history, averaging -8.4% statewide and -12% for condominium owners. The 30-day average for homeowner rate filings is now -1.3%, compared to -0.1% one year ago, and the 180-day average shows a -0.1% change compared to a +7.6% increase in the same period last year. According to SandP Global, the Insurance Information Institute, and Lending Tree, Florida had the lowest average homeowners rate increase in the nation in 2024just one percentwhile 33 other states experienced double-digit increases. Reinsurance costs have also continued to decline, with risk-adjusted costs dropping 1.56% in 2024 and another 0.36% in 2025, reflecting continued confidence in Florida's market.

AUTO:

Florida is seeing great success within the auto insurance industry. Commissioner Yaworsky recently announced a decline in auto insurance rates for Florida. For 2025, Florida's top five auto writer insurance groups are indicating an average -6.5% rate change, down from an average +4.3% in 2024 and a staggering average of +31.7% in 2023. The top five auto writer insurance groups amount to 78% of Florida's auto market.For more information, clickhere.

In September, Progressive recorded a $950 million policyholder credit expense, representing a current estimate of profit earned on the three-calendar year period ending Dec. 31, 2025. The company expects to provide credits to active policyholders as of Dec. 31, 2025estimated at approximately 2.7 million personal auto policyholders in Florida.

In a September SEC filing, Progressive credited Florida's reforms for its success, stating: "Since Florida insurance reform was enacted in early 2023, we have seen lower loss costs on certain types of personal auto accident claims and favorable reserve development, and we have experienced strong profitability in our Florida personal auto business."

Excess profits for motor vehicle insurance are prohibited. Auto insurers are statutorily obligated under Section 627.066, Florida Statutes, to return excess profits to policyholders when applicable. Thanks in large part to historic legislative reforms over the last several years that have strengthened the state's insurance market, OIR is aware that several auto insurance companies may be approaching the statutory threshold. For more information about Florida's excess profit statute, clickhere.

LITIGATION DECLINE AND MARKET IMPROVEMENT:

Florida's legal climate has also dramatically improved. Thanks to the Governor's tort reforms, frivolous property claim litigation has declined sharplydown 25% in the first half of 2025 compared to the same period in 2024. Overall, insurance litigation filings fell 23% year-over-year from 2023 to 2024 and remain below pre-2018 levels. Every month of 2025 has reported a continued decline in litigation compared to the same month the previous year, further proof that the state's legal environment has stabilized and is discouraging abusive lawsuits.

The success of these reforms is also evident in the depopulation of Citizens Property Insurance Corporation. Citizens, which serves as the state's insurer of last resort, has seen a total exposure reduction of more than $304.5 billion. In 2024, 477,821 policies were assumed by private insurers, and an additional 216,799 policies have transitioned so far in 2025. This demonstrates a clear shift of risk back into the private market, signaling renewed industry confidence and stronger consumer protection.

Governor DeSantis also announced continued investments in the My Safe Florida Home program for 2026, ensuring more families can harden their homes to withstand weather events and lower premiums. This program provides free wind mitigation inspections and matching grants for homeowners to harden their properties against storm damage. Since the program was reinstated in 2022, more than 122,000 inspections have been completed, with 63,000 home hardening applications approved and 42,000 projects completed. More than 62,000 homeowners have received grants totaling $383 million, resulting in an average $900 premium reduction last year.