Florida’s property insurance market, once responsible for 76% of US homeowners’ insurance lawsuits, has seen litigation fall by more than 30% since reforms in 2022-23, according to Gallagher Re’s analysis of state data.
The drop in lawsuits has influenced insurer performance, the role of Citizens Property Insurance Corporation, and the outcome of the June 1, 2025, reinsurance renewal.
The reforms, SB 2-A in 2022 and HB 837 in 2023, eliminated “one-way” attorney fees, abolished assignment of benefits for new property policies, shortened deadlines for filing claims, restricted attorney fee multipliers, and revised comparative negligence rules. Gallagher Re noted these measures were intended to reduce legal costs and bring stability to the market.
Figures from the Florida Office of Insurance Regulation, cited in the Gallagher Re report, show property insurance lawsuits returning to levels last seen in 2019. Defense and cost containment expenses dropped to 3.4% in 2024, the lowest since 2015. Florida domestic insurers, which recorded no underwriting profit from 2016 to 2022, collectively posted a net profit in 2024 with combined ratios below 100% for the first time since 2015, despite $20 billion in insured losses from Hurricane Milton.
Reinsurance pricing reflected these shifts. Gallagher Re reported that Florida carriers secured an average 10.7% risk-adjusted reduction at the June 1, 2025, renewal across all layers, with improvements in contract conditions and greater reinsurer participation on lower layers. The catastrophe bond market added further capacity.
Primary rates, which rose 45% between 2017 and 2022, are beginning to ease. Gallagher Re cited FLOIR data showing a 0.7% average decline in homeowners’ premiums in Q4 2024 compared with the prior quarter. Since January 2024, 27 insurers have filed for rate decreases, and 41 sought no change.
Capital inflows have returned, with 14 insurers approved since the reforms, according to Gallagher Re. These firms brought in more than $400 million in policyholder surplus, while 60% of the top ten national carriers expanded their business in the state. Citizens Property Insurance Corporation transferred 1.2 million policies to private insurers in 2024, reducing exposure by more than $170 billion. By June 2025, Citizens’ policy count dropped to 777,592, down by one-third year over year.
Gallagher Re noted that Florida’s reforms are being studied by states such as Georgia, Louisiana, and Connecticut, which are considering similar measures around attorney fees, negligence rules, and litigation funding.
Do you think Florida’s approach to litigation reform should be adopted in other states? Share your opinion in the comments.
