Florida Property Insurance Market Strengthens Post-2022 Reforms

The Florida domestic property insurance market has undergone a significant turnaround following legislative reforms enacted in late 2022 and early 2023, according to ALIRT Insurance Research's 2025 market update. Previously facing near-collapse conditions in 2022 due to high litigation abuse, rising loss costs, and insurer insolvencies, the market now shows substantial financial improvements and renewed insurer interest. ALIRT's analysis highlights the entrance of 18 new or re-launched insurers since the reforms, with six starting to write homeowners policies between 2024 and 2025, signaling revitalized market confidence. The report examines the Florida Domestic Insurer Composite, consisting of 37 companies with diverse ownership and strategies, noting improvements in premium growth, underwriting profits, and capital generation. These indicators suggest a healthier market environment where specialized property insurers are showing stronger financial performance, supported by ALIRT Scores monitoring stability and solvency. Despite these positive trends, ALIRT cautions that the Florida homeowners insurance market remains vulnerable to sharp reversals. Risks include potential large storm losses, fluctuations in global reinsurance pricing, and ongoing regulatory scrutiny. Proposed legislative initiatives aimed at revisiting the recent market reforms introduce additional uncertainty that could influence future market dynamics. Overall, ALIRT concludes that while the Florida property insurance market enjoys its strongest position since the mid-2010s, it must navigate ongoing risks inherent in its geographic and regulatory environment. The transformation demonstrates the impact of litigation reform, improved underwriting discipline, and stabilized reinsurance, fostering an investable and sustainable insurance ecosystem.