2025 Florida Property Insurance Market Sees Strong Recovery Post-Reforms

ALIRT Insurance Research has released its 2025 Florida Domestic Property Insurer Market Update, highlighting a significant turnaround in Florida's homeowners insurance market following legislative reforms enacted in late 2022 and early 2023. The market had previously faced severe challenges including litigation abuses, escalating loss costs, and numerous insurer insolvencies. Since the reforms, confidence has returned with eighteen new or relaunched insurers entering the market and increased underwriting activity through 2024 and 2025. ALIRT's analysis of a 37-company composite shows improvements across key financial metrics such as premium growth, profitability, capital generation, and surplus levels. The insurance landscape in Florida is now considerably more stable, characterized by enhanced underwriting discipline and more balanced reinsurance dynamics. However, ALIRT cautions that the market remains vulnerable to large storm losses, changes in global reinsurance pricing, and potential regulatory and legislative shifts that could affect the recent gains. These dynamics underscore the importance for insurers and investors to closely monitor ongoing compliance, risk management, and market conditions in Florida’s property insurance sector. Overall, the report indicates a revitalized and more sustainable market environment attractive for capital and underwriting, but one still requiring cautious observation due to inherent regional risks and policy uncertainties.