Florida Insurance Trends Shift Toward Relief
Premiums are flattening or falling as litigation drops and insurers expand, easing pressure on buyers and sellers even as new risks emerge, a new report found.
ORLANDO, Fla. — Florida’s property and auto insurance markets are showing signs of stabilization following recent legal reforms, with premiums flattening or declining and more insurers entering the state, according to a new report from the Insurance Information Institute.
The report found that litigation tied to insurance claims has dropped sharply since reforms in 2022 and 2023 limited attorney fees and assignment of benefits practices. Florida once accounted for more than 72% of the nation's homeowners claim-related litigation in 2023, despite representing only 10% of U.S. homeowners claims.
Homeowners insurance is seeing relief, with more than 185 residential rate filings over the past two years reflecting either decreases or no change, even as rates continue to rise nationally.
As litigation eased, insurers expanded in the state. Eighteen new property insurers have entered the market, increasing competition and reducing reliance on Citizens Property Insurance Corp., the state-backed insurer of last resort. Citizens’ policy count has fallen by about 50% since 2024, and its policyholders are expected to see an average rate decrease of 8.7% later this year.
Auto insurance trends also improved, the report found. Florida posted the lowest personal auto liability loss ratio in the nation in 2025, while physical damage losses declined 49.5%, signaling a steady decline from 112.0% in 2022. At the same time, 42 personal auto insurers filed for rate decreases over the prior year, including 32 within the last six months.
Despite the improvements, risks remain. Florida is facing its most severe drought in more than 25 years, with hundreds of wildfires reported early in 2026, including in areas not typically prone to fire. The state’s insurance market remains complex and will require continued oversight as conditions evolve, said Sean Kevelighan, CEO of Triple-I.
“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.”
Source: Insurance Information Institute (Triple-I)
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