By Lewis Nibbelin, Analysis Author, Triple-I
Legislative reforms to deal with declare fraud and authorized system abuse in Florida have continued to assist stabilize the state’s property/casualty insurance coverage market, contributing to premium reductions for 1000’s of house owners and drivers, in response to the newest Triple-I Points Transient.
Because the reforms, practically 20 new property insurers have entered the state and present carriers have expanded their market share, driving renewed competitors within the non-public market. This shift facilitated the bottom variety of insurance policies administered by Residents Property Insurance coverage Corp. – the state-run insurer of final resort – in over a decade, after a 50 p.c drop in insurance policies in power from 2024.
Claims-related litigation has additionally plummeted, with insurance coverage litigation filings down 23 p.c year-over-year from 2023 to 2024. Filings then fell 25 p.c through the first half of 2025, in comparison with the identical interval in 2024, and stay under pre-2018 ranges, as reported by the state governor’s workplace.
Florida’s reforms have been enacted in 2022 and 2023, at a time when the state accounted for 72 p.c of the nation’s owners claim-related litigation however solely 10 p.c of house owners claims. The disparity mirrored escalating premium charges and a multi-year insurer exodus, steering state lawmakers towards litigation reforms that, amongst different issues, curtailed one-way lawyer charges and project of advantages (AOB) for property insurance coverage claims.
Ongoing market momentum
The affect of the reforms is especially evident in Florida’s auto insurance coverage market, which recorded the bottom private auto legal responsibility loss ratio within the nation – and the state’s lowest in 15 years – in 2025, at 52.5 p.c, in response to the OIR. The market’s bodily injury loss ratio additionally fell to 49.5 p.c, reflecting a gentle decline from 112.0 p.c in 2022.
Such stability produced in depth financial savings for Florida drivers in 2025, with the state’s high 5 auto insurance coverage teams averaging a greater than 6 p.c fee discount by mid-year, accounting for 78 p.c of the state’s auto market. These reductions have elevated to a median of 8 p.c primarily based on the latest 2026 regulatory filings.
Owners are additionally experiencing reduction after greater than 185 residential filings for flat or decreased charges over the previous two years, the OIR reported. Fee adjustments have continued to flatten within the state after years of monitoring the upward pattern of charges nationally.
Decrease reinsurance prices issue into this discovering, translating to a ten.7 p.c value lower total on reinsurance in 2025, in response to a Gallagher Re report on the sustained success of Florida’s reforms.
“Hurricanes Helene and Milton, two highly effective and harmful storms that hit Florida in September-October 2024, additionally supplied a helpful – if undesirable – take a look at case for the reforms’ efficacy,” the report added. “Many insurers ceded losses on layers under the state’s disaster fund, however regardless of this, there was extra reinsurance capability than anticipated accessible for these layers.”
Study Extra:
Litigation Reform Works: Florida Auto Insurance coverage Premium Charges Declining
Revealing Hidden Value to Customers of Auto Litigation Inflation
Disasters, Litigation Reshape Owners’ Insurance coverage Affordability
