MALVERN, PA — Legislative reforms targeting litigation and insurance fraud in Florida have contributed to lower rate filings and increased competition in the state’s property and auto insurance markets, according to a new report from the Insurance Information Institute.
The report, Florida: State of the Risk, found that changes enacted in 2022 and 2023 reduced claim-related litigation and helped stabilize premiums, while encouraging insurers to expand or enter the market.
“Florida consumers are experiencing tangible benefits of the state’s legal system reforms,” said Sean Kevelighan, chief executive officer of the Insurance Information Institute. “Premiums are stabilizing, competition is increasing, and homeowners and drivers are seeing real savings.”
The report said 18 new property insurers have entered Florida since the reforms, while policies held by Citizens Property Insurance Corp., the state-run insurer of last resort, declined by 50% from 2024 levels.
Citizens policyholders are expected to see an average statewide rate decrease of 8.7% later this year, the largest reduction in the insurer’s history.
Florida previously accounted for more than 72% of the nation’s homeowners claim-related litigation despite representing about 10% of claims, a disparity that contributed to rising premiums and insurer exits.
The report said litigation filings declined significantly through 2025 following the reforms, which limited one-way attorney fees and assignment of benefits practices and introduced a pre-suit notification requirement.
The state’s auto insurance market also showed improvement, with the lowest personal auto liability loss ratio in the nation in 2025 and a decline in physical damage loss ratios from 112.0% in 2022 to 49.5%.
Rate reductions followed, with 42 auto insurers filing for decreases over the past year and the five largest carriers implementing average cuts exceeding 6%.
Homeowners insurance rates have also stabilized, with more than 185 filings over the past two years reflecting either decreases or no change, even as national rates continue to rise.
The report noted emerging risks, including drought conditions and an increase in wildfires across Florida in 2026.
“The rapid shift from hurricane exposure to wildfire threat underscores Florida’s dynamic and evolving risk landscape,” Kevelighan said.
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