Florida’s property and auto insurance markets are showing signs of stabilization following sweeping legal reforms enacted in 2022 and 2023, with dozens of insurers cutting rates and litigation filings falling sharply, according to the latest issues brief released by the Insurance Information Institute (Triple-I).
The brief found that legislative changes targeting legal system abuse and claim fraud have contributed to rate reductions across both home and auto insurance lines, as well as a surge in new market entrants.
Triple-I said 18 new property insurers have entered Florida since the reforms, expanding competition in the private home insurance market. That growth has driven down the number of policies administered by Citizens Property Insurance Corp., the state-run insurer of last resort, to its lowest level in more than a decade, with policies in force falling 50% since 2024 following depopulation efforts.
Current Citizens policyholders are expected to benefit later this year from an average statewide rate decrease of 8.7%, which the brief described as the largest in the insurer’s 24-year history.
Over the past two years, more than 185 residential property rate filings reflected either decreases or flat rates, even as homeowners' insurance rates trend upward nationally.
Prior to the reforms, Florida accounted for more than 72% of the nation’s homeowners claim-related litigation in 2023, despite representing only 10% of US homeowners claims. The imbalance had fueled escalating premiums, insurer insolvencies, and voluntary market withdrawals, Triple-I noted.
The reforms initially triggered a temporary spike in filings as plaintiffs’ attorneys rushed to file suits before the changes took effect. The trend later reversed, with insurance litigation filings declining significantly through 2025. Florida also began tracking litigation through the Property Insurance Intent to Initiate Litigation (PIITIL) system, which requires policyholders to notify insurers at least 10 days before filing suit. Filings involving assignment of benefits (AOB) continued a pronounced downward trajectory.
Florida’s personal auto insurance market registered the lowest personal auto liability loss ratio in the nation in 2025 – also the state’s lowest in 15 years. The market’s physical damage loss ratio fell to 49.5%, down from 112.0% in 2022.
The five largest auto insurers, representing 78% of Florida’s market, implemented average rate reductions exceeding 6% through midyear 2025. Forty-two personal auto insurers filed for rate decreases over the prior year, including 32 within the last six months.
Despite the market gains, the brief warned of a shifting risk environment. Florida’s property insurers are expected to report strong underwriting results for 2025 following a year without US hurricane landfalls. However, the state is now experiencing its most severe drought in more than 25 years, with hundreds of wildfires recorded since Jan. 1, 2026, including in areas historically considered low 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.”
Kevelighan also cautioned that new hazards demand sustained attention.
“The rapid shift from hurricane exposure to wildfire threat underscores Florida’s dynamic and evolving risk landscape,” he said. “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.”
