Florida Property Insurance Market Shows Stability Post-Tort Reforms

ALIRT’s annual review of the Florida domestic property insurance market highlights a significant turnaround following the implementation of tort reforms aimed at stabilizing this sector. After facing near-collapse in 2022 due to litigation issues, soaring loss costs, and insurer failures, the market has seen revitalization with new capital inflows and increased underwriting interest. Since the reforms, 18 new or re-launched insurers have entered or planned entry into the Florida homeowners insurance market, with six starting operations between 2024 and 2025, signaling improved confidence in the region. A critical factor in the market’s stabilization is the rapid depopulation of Citizens Property Insurance Corporation, Florida’s insurer of last resort, alongside positive trends in composite insurer performance measured by ALIRT Scores. The report also notes diversifying ownership structures and business models, including the growing utilization of reciprocal exchanges, reflecting evolving insurer strategies in response to market conditions. Financial indicators analyzed in the review demonstrate enhanced revenue growth, profitability, capital surplus, and stronger capital inflows, positioning the Florida homeowners insurance market at its healthiest state since the mid-2010s. This improved financial stability is a noteworthy development for insurers, reinsurers, brokers, and regulatory bodies monitoring market viability. However, ALIRT cautions that despite current gains, the market remains vulnerable to volatility due to factors such as large-scale storm events, fluctuations in global reinsurance pricing, and ongoing regulatory uncertainties. Proposed legislation revisiting recent reforms introduces further complexity, signaling the need for continued vigilance among market participants. Overall, the report underlines a period of renewed stability and cautious optimism within the Florida property insurance sector, while emphasizing that state-specific risks and external pressures continue to shape its trajectory. Stakeholders are advised to monitor developments closely as the market navigates these dynamic forces.