Florida Insurance Reforms Drive Rate Decreases and Market Stability
Florida has seen significant progress in reducing auto and property insurance costs due to recent legislative reforms and regulatory efforts.
Notably, Progressive Insurance announced a 6.5% decrease in auto insurance rates and returned $1 billion in premiums to customers, highlighting improved affordability in the state. State Farm also followed with a 10% rate reduction in 2025, and an additional 10% decrease planned for 2026, indicating competitive market dynamics in Florida's auto insurance sector.
On the property insurance front, Florida experienced the lowest rate increase nationwide this year, a notable shift attributed to enhanced competition and regulatory reforms rather than over-regulation. The 2023 legislative reforms, specifically HB 837, targeted the reduction of excessive litigation against homeowners' insurance providers by removing the one-way attorney fee statute and introducing stricter transparency and notice requirements, which contributed to a more balanced legal environment.
These reforms have stimulated market entry, with 17 new property and casualty insurers commencing operations in Florida and numerous companies filing rate decreases or holding rates steady. Citizens Property Insurance Corporation has successfully reduced its policy count by transferring risk to private carriers, signaling a healthier and more competitive insurance marketplace.
The 2023 litigation reforms addressed the disproportionate impact of lawsuits on insurance costs in Florida, where previously the state faced a high volume of claims and lawsuits, leading to elevated expenses for insurers and consumers. The corrective measures have helped stabilize the market and restored equilibrium between consumer interests and the legal environment.
While these developments mark positive progress in Florida's insurance market, further work remains to sustain and enhance affordability and competition. Ongoing efforts are necessary to build upon current regulatory frameworks and encourage market responsiveness to consumer needs, guided by data and practical regulatory strategies.