A new study from the American Property Casualty Insurance Association (APCIA) found that reforms enacted in 2022-2023 have stabilized Florida’s property insurance market.
The study, conducted for APCIA by Moore Actuarial Consulting and James Lynch Casualty Actuary, found that Florida policyholders paid nearly $3 billion less for homeowners and personal auto insurance in 2025 than the year before.
“Florida’s legal system abuse reforms are working as intended,” Chase Mitchell, assistant vice president of state government relations at APCIA, said. “The data shows a clear and compelling trend: litigation is down, competition is increasing, market stability is improving, and home and auto insurance costs are trending downward. Consumers are benefiting from more coverage choices and increasingly competitive pricing. We encourage Floridians to shop around and compare policies and prices from different companies to ensure they are getting the best coverage at the best price.”
Among the key findings, the report said:
- Homeowners insurance rate increases are trending significantly downward, falling from an average of 9.6 percent in 2023 to 1.3 percent in 2024 and 0.9 percent in 2025.
- Personal auto rates fell by approximately 4 percent in 2025, which is a dramatic reduction from the average auto rate increase of 7.1 percent in 2022.
- Homeowners insurance direct written premiums declined in 2025 by approximately $1.29 billion.
- Personal auto insurance direct written premiums declined in 2025 by approximately $1.70 billion.
The study also found that policyholder dividends increased 118 percent between 2023 and 2025, while dividends across home and auto rose 43 percent in 2025 alone, reaching $211 million. So far in 2026, major insurers announced additional credits and dividends totaling more than $1.4 billion for Florida auto policyholders.
The report concluded that Florida’s property insurance market is more stable and stronger today than it was before reforms were enacted. Key indicators include:
- Twenty new property and casualty insurers have entered Florida’s market since reforms were enacted.
- More than $850 million in new capital has entered the state’s insurance market.
- Citizens Property Insurance Corporation’s market share fell to approximately 3% in 2025, down sharply from peak levels.
- Fewer insurers are experiencing financial distress or enhanced regulatory monitoring.
- Florida-based insurers are financially stronger compared to five years ago, with median risk-based capital ratios rising approximately 40 percent since 2020.
Additionally, following reforms aimed at reducing excessive litigation, the number of lawsuits filed against property insurers has fallen by approximately two-thirds from a peak of more than 8,000 in 2021 to around 2,500 by the end of 2025. Further, the number of lawsuits involving assignment of benefits has fallen from 1,000-2,000 per month to around 200 per month.
“While Florida continues to face significant risks from catastrophic hurricanes and flooding, these reforms have reshaped the insurance market and put the state on a much stronger and more sustainable path that will help ensure Floridians can access coverage that fits their needs and budget now and in the future,” Mitchell said.